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Vertical and horizontal organizational structures

Describe the nature of vertical and horizontal organizational structures.

Explain why the global marketplace has applied stress to many companies forcing them to restructure into horizontally structured companies.

Explain the concept of self-managed-virtual-teams and the reason they are needed in the global marketplace.

Describe a specific company that went to a horizontal structure.

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VERTICAL AND HORIZONTAL STRUCTURES:
Vertical structures:
1. These are hierarchically structured companies.
2. There is centralization of authority;
3. This is the traditional form of management and there is a strong bureaucratic control over the company.
Horizontal structures:
1. There are teams that are organized around business processes.
2. Layers of management are not existent and the team members are held responsible for results.
3. Decisions need to be made in accordance with business objective. For example where the objective is making customer satisfaction, decisions need to be made to attain customer satisfaction.
4. There are teams around the most critical business processes.
5. Team members are cross trained for performing a range of activities.
6. The team is given an ownership of the process.

WHY GLOBALIZATION HAS FORCED COMPANIES INTO HORIZONTAL STRUCTURES
1. There can be greater ...

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