Sunday, March 5, 2017

Vertical vs Horizontal Management (and matrix)

There are three major ways you can set up the organizational flow of information and power. The first one is a vertical organizations. The companies who have this type of organization tend to have many middle managers from the CEO to the front line staff. This leads to clearly defined roles and is great for someone who wants to advance through an organization. Relating to my last post I believe this is important for me to make sure my company that I end up with has a Vertical structure since I would rather stay with a company and advance internally rather then job hop.
Image result for vertical vs horizontal organizational structure
When it comes to a horizontal structure they have few layers from the top to the bottom which allows quicker flow of communication and decision making. This is great for startups and more innovative companies. There is an article below this post which talks about how "Today best companies are horizontally integrated". I believe that this is true for certain industry and extremely not true for others. If innovation is a key player in your industry I absolutely believe that its better to have a free flow of communication avoiding the bureaucracy of many modern companies.

In today's society many companies are also attempting a Matrix structure which somewhat combines both of these styles. This style tends to bring in specialist while also keeping the specific lines of business. The biggest issue with this one is that it is hard to have the employees focus both on their own individual work while also contributing to a team projects and could find employees falling behind in one.
Matrixed Organization T
There is no best option overall, but there absolutely is a best fit for specific employees and specific industry's.  This becomes increasingly important for owners to have a clear vision for their organizational structure to be the most competitive and innovative in their industry.

https://hbr.org/2012/12/todays-best-companies-are-hori
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1 comment:

  1. Mark BonicaMarch 6, 2017 at 10:52 AM

    Hospitals use a lot of matrix relationships. Nursing is a good example. The CNO is responsible for nursing practice within the hospital. But the nurses themselves may not report to the CNO, they may report up through a chain that leads to the COO or CMO. And yet, the CNO has the authority and responsibility to influence what these nurses do in their day-to-day roles. I had a sense from Diane's presentation that there may be some matrix alignment in the revenue cycle side at WDH. Perhaps you are seeing that?

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