13 October 2017

Types of works organisation: vertical, horizontal and flat

vertical works

When it comes to structuring a company, there are different models and even more variants, from vertical work organisations to horizontal models and even holocratic organisational charts without bosses.

The choice of one form or the other will depend on the individual case, since all systems have their pros and cons. What are the main organisational systems?

Table of contents

Differences between structures

If, when drawing the company's organisational chart, the structure resembles a pyramid, then we are dealing with vertical organisations. Conversely, if it looks more like a rectangle or a line, we are talking about horizontal or flat models.

In the face of these, the organisations of rope access workers they are characterised by a strong hierarchy of human capital, Positioning themselves at the top of the pinnacle, the CEO and cascading down to senior executives, middle managers, and employees.

Thus, the biggest difference between vertical and horizontal organisational structures lies in the decision-making process. In this regard, whereas in the former any issue must go through a large number of levels, from the worker to the chief executive officer, in the second, this process is simplified, with a smaller number of scales.

On the other hand, the Holacratic or flat models aim to empower employees 100%% through greater decentralisation., leaving them the ability to make decisions for themselves. Hence they are known as ‘bossless’ models.

Advantages and disadvantages of the different models

ROPE ACCESS ORGANISATIONS

Rope access organisations have some of the most important advantages compared to the rest:

  • Control. With clearly defined lines of command, any action is subject to the approval of the relevant superiors, resulting in greater control over the staff's work.
  • Task sharing. Given that vertical organisations are structured precisely with roles and departments, each professional will have specific functions and objectives, which helps to avoid overlapping tasks between different workers.
  • Specialisation. As a general rule, companies operating under this structure have highly qualified professionals to carry out the positions to which they have been assigned.
  • Effectiveness. When an optimal flow of communication and task allocation is achieved, this organisational model can become very effective, much like a well-oiled machine.
  • Promotion. In these companies, employees have a clear understanding of the career paths they can develop within the organisation as they move up the hierarchy, which contributes to Improve employee motivation.

However, vertical work organisations also present a series of disadvantages:

  • Bureaucratisation. The very distribution of roles and positions in these companies can lead to any project being subjected to excessive bureaucracy, delaying decision-making.
  • Wage cost. By having more senior managers than in flat organisations, the wage costs executives can be more costly in these companies.
  • Loss of opportunities and effectiveness. In these companies, decision-making must come from the top person, which limits the company's ability to react to crises or opportunities.
  • Demotivation. If recognition and equity programmes are not implemented within the workforce, employees at lower levels may feel undervalued compared to those in middle or senior ranks, leading to demotivation and discontent among human capital, and increasing rates of absenteeism and Staff turnover.  

HORIZONTAL STRUCTURES

In this second model, the following are presented advantages:

  • Satisfaction. The team is usually more motivated than in the vertical structure, enjoying greater autonomy and independence to do their work.
  • Cooperation. In these organisations, the order-execution system of the vertical model between boss and employee is replaced by a collaborative process in which team collaboration is encouraged.
  • Agility. Not being as bureaucratised, the horizontal company gains in speed and adaptability to changes.
  • Innovation. If in vertical work organisations opportunities could be lost due to the complex decision-making framework, the horizontal model gains fluidity, allowing for greater innovation and competitiveness.

Instead, these are the cons of this organisational model:

  • Overlap. If the competencies of each department and worker are not clearly established, encouraging collaboration can lead to overlapping tasks and uncertainty among teams.
  • Limited promotion. Another disadvantage is that employees cannot develop an upward career path, as managerial positions are scarce.
  • Out of control. In small and medium-sized businesses, it is relatively straightforward for a horizontal model to thrive, but in large companies, this structure can cause problems when organising the functions and responsibilities of each professional.

FLAT COMPANIES

Based on the concept that if workers are involved in tasks and given decision-making power, they will be more productive, flat organisations offer the following benefits:

  • Commitment. Empowering templates leads to greater individual responsibility from each employee, who will strive to carry out their work in the best possible way.
  • Motivation. Feeling like important pieces of the company, professionals in these organisations show higher levels of satisfaction and motivation.
  • Speed. As employees themselves are able to decide on matters within their remit, these companies provide a much more agile response than organisations with traditional, vertical structures.
  • Communication. With no superiors, or very few, coordination will come hand-in-hand with fluid, multidirectional communication, where all employees share their projects or reservations.
  • Savings. Given that there are no or very few senior positions in this organisation chart, wage costs tend to be significantly reduced.

In contrast, flat or holacratic organisations present the same disadvantages as the horizontal ones but aggravated when there isn't a cohesive, prepared, motivated team aligned with the company's objectives. In these cases, Without anyone to guide the direction, each individual will ‘row’ in a different direction, preventing the company from moving forward.

Edenred Spain

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