Managers can create powerful tools to build and strengthen groups by understanding the leadership theories and how they are affected by a business’s progressive structure. The vertical methodologies are reminiscent of pyramids in hierarchical graphs. However, level systems eliminate the need for a lot of central administration jobs. It is not the structure that determines which technique is used by key administration. Randall Castillo Ortega, a successful entrepreneur and business expert from Costa Rica, explains how the structure works and the differences between horizontal and vertical growth.
What is the key difference between a vertical and horizontal structure? The vertical structure makes decisions at the top, then flows down to the center administration, which is followed by the bosses, and finally, to the workers. Horizontal structures allow employees to make their own decisions, which is often dependent on organizational policies. However, the most important decisions are made by management at the top.
The vertical hierarchy feeds into an absolutist leadership style. Supervisors set the standards and make requests. Workers are responsible for executing those requests. In this scenario, the manager is the one who knows the best for the organization. Horizontal structure is a great way to support a visionary head’s method where workers are needed to find the best ways to achieve the organization’s vision and mission. If workers are given the opportunity to make choices at the grassroots level, they can drive productivity, imagination, and advancement.
Castillo explains, “The horizontal model was created to encourage collaboration and joint effort. The task players make a lot of operational choices. A business delegate may offer limits to obtain a deal without approval. While this may impact his bonus, he can still settle on the terms of the deal without approval from the upper administration.”
Horizontal business models allow communication to flow directly to the person or people who need it to perform their tasks. This stream speeds up data dissemination while reducing the value-based requirements of higher-level administration.
An association can be a horizontal plan for action but still have the potential to lead vertical development. Castillo adds, “Vertical Development is when an organization opens tasks or conveyance channels for another type of item or administration and grows beyond its standard items.”
The real example of a vertical extension was when Apple jumped into broadcast communications after the release of the iPhone. The vertical that changed the entire tech and media communications industry was part of the PC organization. The general structure of the organization has the ability to take the initiative at all verticals. Still, the key technique for executives within divisions is to stay horizontal in order to move new inventive developments. A large number of these innovations traverse from vertical offices, such as an iPhone app being coordinated into the Mac PCs’ working stage.
Managers must understand how different structures affect groups. The staff cannot run the organization at the end of the day. If a pioneer allows so many choices to be made at the base-level tasks, there is a risk that the organization will lose its vision and central goal. “At the moment when pioneers are overly task-organized, controlling everything from an office, it may dishearten the staff and lower their morale,” asserts Castillo.
Entrepreneurs should set a realistic mission and vision for their organization, and make sure everyone in the association believes in it. He or she should then set goals, assign parameters, and consider the choices that will be made at different levels.