Join now. x Decision making system is not centralized. Therefore, organizational structures of such companies should have more horizontal orientation, which facilitates quick decision-making and promotes creativity, necessary for maintaining market position and satisfying customer demands (Jones, 2009). Vertical orientation should be further embedded into the employee appraisal programs, which should highlight promotion opportunities based on performance and meeting objectives, rather than creativity and risky behaviour (Plunkett, Attner & Allen, 2008). Goods are of different qualities. Free Research Paper On Viral And Bacterial Chromosomes. D) vertical differentiation, horizontal differentiation, collaboration. Vertical differentiation - the location of decision-making responsibilities within a structure 2. The horizontal development calls for improving skills, abilities, and behaviors. The company exists with only a handful of staff, who may well be the founders of the business. A “vertical” company is known for having a large staff of middle managers between the CEO and the front line. VERTICAL DIFFERENTIATIONVERTICAL DIFFERENTIATION Difference in authority and responsibility in organizational hierarchy Tall, narrow organizations-greater vertical differentiation Flat, wide organizations-less vertical differentiation Tall structures have many levels of authority relative to the organization’s size. Discuss the roles of vertical and horizontal differentiation as they relate to organizational structure. Accessed January 26, 2021. https://www.wowessays.com/free-samples/the-vertical-and-the-horizontal-structure-of-an-organization-essay-examples/, WowEssays. The second layer contains managers or team leaders who report to the business owner. Financial statement analysis helps companies gain an understanding of the financial position of the company, results of their operation, and cash flow of their company, which is also the main purpose of financial statements. Trading is known as an exchange of good and services from country to another country. Communication in an organization can be categorized as vertical, horizontal or diagonal. Management, meeting and exceeding customer expectations. As a result of the ineffective communication system, Littleton faces a number of issues which ultimately has affected the bottom line of the company. Horizontal Differentiation in Organizational Structure In contrast, horizontal differentiation is concerned with how to divide the organization into subunits. A company with a horizontal structure is called a flat company. However, trading not solely occur to the scarce resources but also happens to other country that can specialize in similar goods and services. Get help with 11% off using code -, No, thanks! For instance, carrying out a financial analysis of a company is to know its current financial position and its returns compared to risks. It requires highly centralized decision-making with the clearly defined chain of command and formal authority lines. Its consequence you have been told could be modelled by Monopolistic Competition. Flat structures have few levels but wide spans of control. Based on different strategic roles and organizational specifics, the knowledge transfer includes two types, which are vertical and horizontal way. A business owner is typically at the top of a vertical chain of command. Accessed January 26, 2021. (2007), “Financial statements report both a firm’s position at a point in time and its operations over some past period. (1995). If you’ve just started your business, or you’re struggling with your current marketing strategy, it’s time to take a look at the two distinct marketing systems available: Vertical and horizontal. Question: Discuss The Roles Of Vertical And Horizontal Differentiation As They Relate To Organizational Structure. 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