Vertical Organization Chart Of A Company: When It Is Convenient

The vertical organization chart of a company is a reasonably widespread structure in various sectors of commerce and industry. We all have a rough idea of ​​what this organizational model entails, although perhaps we have never noticed the reasons for this preference. Today we will take care of it.

What Is The Organization Chart Of A Company?

A company’s organization chart is a visual diagram describing employees’ roles, where they are in the chain of command, and how decisions are made. These organizational structures may use functions, markets, products, geographies, or processes as a guide.

It is a tool that serves companies of all sizes and industries and helps them define critical elements about the operation of the business. As the company grows, the organization chart can also be helpful for new employees by allowing them to discover who manages what processes in the company; And. In the event of a change at the leadership level, this chart makes it possible to visualize how the workflows would work.

What Is A Vertical Organization Chart Of A Company?

Like other corporate organization models (tabular, circular, mixed or horizontal), the vertical organization chart in a company seeks to maintain its structure by placing each of its members in the position that corresponds to them according to a series of previous criteria.

With What Objectives Is The Vrtical Organization Applied In A Company?

The vertical organization chart of a company helps us visualize the different hierarchical levels that exist within the company, the total number of members that comprise it, the positions of greater responsibility and, of course, the protocols for action and performance.

The vertical organization chart in a company allows the management and command lines to be clearly expressed. Those responsible for management and direction have a strategic and joint vision of the processes.

What Is A Vertical Organization Chart, And Examples Of When To Apply It?

The vertical organization chart is a very visual company organization tool. There are several reasons why the vertical organization chart is one of the most recurrent models in business practice. Among the cases it is recommended are those of the following examples:

• When companies are too large, management must be clear about the command lines and what place each member occupies. In this way, greater control is achieved, primarily in organizations that, due to their size, are almost universes in themselves.
• It is necessary to focus actions on departments, sections, areas or workgroups, which do not necessarily have to be numerous. In this case, the justification of the model is based on the timely distribution of functions and specialization of tasks.
• When companies are governed by a results-based model, generally in the short or medium term, but not by the interaction and participation of its members. In other words, in this type of organization, it is essential to note the chain of command and the authority of the leaders of the work teams.
• When the company constantly appeals to positions as the primary motivation. Workers strive to climb the rungs of the organizational pyramid to acquire parts of greater responsibility and, therefore, better remuneration.

What Is A Vertical Organization?

The vertical organizational structure is what characterizes a vertical organization. A strict hierarchical structure is appreciated with the power that emanates from the top down. With a well-defined chain of command, decisions generally move top-down through the company, level by level, layer by layer, and people at the bottom have the least autonomy.

Each person is supervised by whoever is directly above them in this type of organization. Employees can control their functions and duties, but they must always be accountable to a superior.

What Is The Disadvantage Of The Vertical Structure?

A vertical organizational structure can damage employee relations and damage departments’ work environments. This is the case of the lower-level manager who realizes the need to act before an event but cannot do anything to avoid the problems that threaten to arise since it is not in his power. You are also unable to warn your superiors effectively, so you end up with the feeling that your warning has not been heard and that the unfavourable situation could have been avoided.

This type of inefficiency, in addition to slowing down the company’s ability to react to adverse circumstances and limiting its room for maneuver, can also eliminate creativity and stifle the suggestions of those who provide their services at the lower levels of the vertical organization chart in a company.

In the end, this level of control has many disadvantages, such as those linked to the lack of innovation, the lack of flexibility, the difficulty for interdepartmental cooperation to take place, the loss of opportunities due to lack of visible damage the welfare of the employees. Employees.

Vertical vs. Horizontal Organization Chart

Despite the effectiveness of a vertical organization chart in a company in the cases mentioned in the previous section, not a few companies have moved towards horizontal models of command in recent years. Which is the reason?

Simple: the cultural and social changes of the 21st century, which are also reflected in business models. Given the agility of the processes and the high response capacity required of business managers, fully specialized areas and very notorious hierarchical levels have progressively disappeared.

A particular trend seems to prevail today in many sectors of industry and commerce: the less apparent hierarchies and authority are, the better results and benefits are obtained.

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