The horizontal organization is also known as the flat organization, it is one in which there is little to no emphasis on hierarchy and seniority. You can also check out the advantages and disadvantages of horizontal organizational structure to better understand this topic.
Pros or advantages of horizontal or flat organization structure:
- It is the most logical and natural form of the department.
- It gives rise to specialisation, which makes optimal use of resources.
- This type of structure may enable to top management to exercise control over a number of functions.
- It eliminates duplication of efforts which increases efficiency.
- It lays emphasis on each and every activity.
- This type of organization is cost-efficient.
- It may take a significant amount of time to receive the approval necessary to move forward with a project or an idea.
- This organization structure facilitates delegation of authority and therefore reduces the work burden of the top managers.
- It requires less dominance and supervision.
Cons or disadvantages of Horizontal or flat organization structure:
- It is nonresponsive to environmental change.
- It does not promote innovation and creativity.
- This type of structure can create a power struggle.
- It may hinder growth.
- There may be difficulties in coordinating the activities of the various departments.
- There may be a conflict between the department as the responsibilities are interdependent.
- It maximizes the supervision costs.
- There is every emphasis on specialization. In addition, there is less motivation.
- It makes employee retention difficult.