Horizontal organizational structure involves shared decision-making among workers, promoting collaboration, productivity, and creativity. Cross-functional teams are common, and individual initiative is encouraged. This structure is often used in product development or core business processes, and is different from the traditional vertical structure. An example is an advertising agency developing a marketing campaign.
Horizontal organizational structure is a form of worker management in which decision-making is shared among workers along horizontal lines, as opposed to a hierarchical or pyramidal management structure. The philosophy behind this form of management is that a collaborative model improves morale, productivity and creativity. It is a method often used in organizations with a strong focus on product development or core business processes. Cross-functional work teams, in which workers with experience in different areas work together on a project, are a common feature of a horizontal organizational structure.
The philosophy of an egalitarian top-level workgroup can be adopted in organizations that value collaboration and encourage individual initiative among workers. In a vertical structure, decisions made at the top often filter down to lower-level workers. Usually these workers would then have to implement such decisions without objection.
Sometimes workers may not understand the reasoning behind a particular decision. An employee may resent the change because he doesn’t see a need for it. By comparison, within a flat organizational structure, those running the business typically want to encourage free thinking, individual initiative and collaboration among staff. Creativity is valued more than consistency across the organization.
Vertical structures are the most common management systems in business, but horizontal structure is often used within development teams. The reason for this is its suitability for generating free-flowing thought and creativity. This is one of the most common reasons a company will use a flat organizational structure. An atmosphere that generates creativity is different from one that seeks to instill obedience at all times.
Cross-functional teams often generate a synergy that enhances a company’s creative capital. Such collaborative teams can work together on projects that require a high level of personal initiative and creativity. No team member is the boss of the other members. Everyone has the same level of authority within the company’s hierarchy.
An example to illustrate how a horizontal organizational structure can work could be an advertising agency tasked with developing a marketing campaign for a large company. Together, the team would generate a basic concept to anchor the advertising campaign in the consumer’s mind. One team member could work on the wording, and yet another on the graphic appeal. A fourth member can define the timing for the launch of the advertising campaign and the coordination of its launch with the media.
Typically, no team member would be able to command other team members, but all team members would be accountable to a team leader. A company can have many horizontal teams operating at any one time. In a small company, however, each team member can collaborate with the company manager.
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