Question

In: Operations Management

Based on your general knowledge of vertical or horizontal restructuring: which one do you generally recommend?...

Based on your general knowledge of vertical or horizontal restructuring: which one do you generally recommend? Provide one argument in favor of your choice and one argument against the other form of restructuring.

Solutions

Expert Solution

I generally recommend horizontal restructuring business model because in it employees are encouraged to make suggestions and offer new innovative and creative ideas that can improve workplace processes. Employees have the authority to implement changes in an organization without obtaining authorization of top level management. In a horizontal restructuring, communication flows freely between team members, as there is no rigid hierarchy. This leads to boost efficiency and productivity of employees as well as an organization. In this model employees are more collaborative.

In vertical restructuring, communication hamper because of multiple layers of management. In it collaboration only occurs when managers schedule meeting with employees. Employees have no authority of making changes as they have to take permission from the superiors or management if they have new suggestions and it totally depends on management whether they accept that suggestion or not. This leads to decrease in employees’ motivation level.

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