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									Q: define and explain the vertical structure the horizontal structure and
organizational integration?

Vertical structure:
In order to under stand this issue such as reporting relationships, authority response and
the like we need to be with the vertical dimension off a firm structure.
(Thomas S. Bateman & Scott A. Snell).

Now the vertical structure includes the following things:
1) Authority in organization:
Authority is actually the legitimate right to make decision and to tell the other people
what to do is a fundamental to the functioning of every organization for example. A boss
has the authority to give order to a subordinate.

And traditionally authority resides in position rather than in people and in private
business the owner has the ultimate authority and in most small structure the owner act as
a manager and here comes the formal and informal authorities the people with the
particular expertise experiences or personal qualities may have considerable informal

In addition, it includes the followings:-
The board of directors
The chief executive officer (CEO)
The top management team

2) Hierarchical levels:
As we have discuss the three board levels of the organization pyramid, commonly called
as the hierarchy. The eco occupies the top position and is the senior member of the top
management and the top managerial level is also includes the presidents and vice
presidents and these are the strategic managers in the charge of the entire organization
and the second board level is the middle management at this level manger are in charge
of plants of department. The lowest level is made up of low management and workers it
include the officer manager sale manger supervisor and other first line managers as well
as the employee who report directly to them this level is also called the operational level
of the organization.

3) Span of control:
The number of people under the manager is an important feature of the organization
structure and the number of subordinates who report directly to an executive or
supervisor is called as the span of control. The implication of difference in span of
control for the shape of an organization are straight forward holding size constant narrow
spans build a tall organization that has many reporting levels.

4) Delegation:
Delegation is the assignment of authority and responsibility to sub oridinates at a low-
level delegation is perhaps the most fundamental feature of management because it
entails getting work through others.

5) Decentralization:
The delegation of responsibility and authority decentralized decision making in
centralized organization important decision are made at the top level but in decentralized
organization most of the decision are made at the low level.
It is just known as the internal environment, which is not created by the jobholders, nor is
labors there two types of differentiations, Vertical differentiation and Horizontal did
There are two types of differentiations.

Means that these differentiated units are put back together so that work is coordinated
into an overall product.

Horizontal structure:
The horizontal structure eliminates the need to devote resources to vertical
communication and coordination. The internal machine of a flatter organization uses
fewer resources.
Publication: Business Credit
In the horizontal form of organization, work is primarily structured around a small
number of core processes or work flows, as shown in figure 1. These link the activities of
employees to the needs of suppliers and customers, to improve the performance of all
three. Teams rather than individuals perform work, and the management of work. While
still hierarchical, the structure tends to be flatter than traditional functional systems.
(Ostroff and Smith, 1992)

Instead of the multi-layer reporting structure, the pure form of horizontal organization
consists of two core groups. A group of senior management responsible for strategic
decisions and policies, and a group of empowered employees working together in
different process teams. The objective is to change the staff's focus from coordinating and
reporting, to the flow and nature of work, and to spend more time on activities that add
value for customers. Information in the horizontal organization is processed at the local
level by process teams. Team members are typically empowered personnel from the
respective functions working in the process. The process team, permitting the company to
operate with flexibility and responsiveness in a continuously changing business
environment, can resolve local problems quickly.

Increased interaction of employees from the different departments fosters close working
relationships and better communication. Employees from the different functions can
obtain better understanding of each other's responsibilities, thus reducing costly conflicts
arising because of misunderstanding and disagreement among the different departments.

Future organizations will focus on quality, speed, customer services and integrated
solutions to problems. It includes:

Organizational integration:
Until recently, the integration of firms' processes and functions was relatively limited in
scope and occurred across few units or processes of single organizations. However, partly
due to recent advances in information technologies and to heightened competition,
today's firms are engaging in unprecedented levels of large-scale integration endeavors
that take a variety of forms (Markus 2001, Porter 2001).
   Divisional Organization:
   Divisional organization is departmentalization that groups around products, customers or
   geographic regions. Here we are talking about Product Division that has the following

 Information are managed more easily
 People have full time commitment to a particular product line
 Task responsibilities are clear
 People receive broader training

   Customer and geographic apart from it contain the following points but they are based on
   customer relations and the geographical needs.

   Organizational Integration:
   To study and understand the diverse and complex ways in which integration affects key
   organizational outcomes, the concept needs to be clearly specified. However, over the
   years, integration has been diversely understood and conceptualized across disciplines
   and has evolved in a fairly independent and nonintegrated way, with each discipline
   having its own perspective on the topic.

   Organizational Integration refers to the way all parts of the organization will work
   together. Depending on the different structures of an organization. These strategies are as

   Co-ordination by Plan:
   Co-ordination is designed on the bases of a plan. The plan is that the interdependent
   organizations are required to meet certain deadlines and objectives to complete a
   common goal.
    Coordination and Communication:
    In coordination with communication, the management focuses on two strategies.

   Reducing the need for information by creating slack resources and creating self-contained
   Increasing Information processing capability by direct contact, liaison actions, task
    forces, Teams, Matrix organization.

    The human body is a good example of a highly integrated system exhibiting both
    distinctiveness and responsiveness. While its parts are highly specialized and distinct,
    they are also highly responsive to each other. For example, many physical activities such
    as walking necessitate highly specialized parts like the brain, legs, feet, and arms to
    rapidly react and adjust to each other. Similarly, the integration of, say, R & D and
    manufacturing does not imply merging them into a production department (thus losing
    their distinctiveness), but rather leaving the two units separate, specialized, and distinct,
    while assuring that they are responsive and work together as a unified whole

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