Fundamental Principles for Creating Horizontal Organisation:
DESIGNING THE ORGANISATION
1) Organise cross-functional procedures.
2) Install process owners.
3) Form teams, not individuals, as the cornerstone of organisational design and performance.
4) Integrate along with customers and suppliers.
5) Decrease hierarchy through eliminating non-value-added work and through providing team members the authority to make decisions.
INSTITUTIONALISATION OF CHANGE
6) Establish a corporate culture of openness, cooperation and collaboration, a culture which focuses on continuous performance improvement and values employee's empowerment, responsibility, and well-being.
7) Empower people through giving them the tools, skills, motivation and authority they requires to discharge their responsibilities.
8) Use IT to help people reach performance goals and deliver the value proposition to the customer.
9) Measure for end of procedure performance goals as well as customer satisfaction, employee satisfaction, and financial contribution.
10) Redesign functional departments or fields to work as partners in process performance along with core process groups.
11) emphasize many competencies and train people to handle issues and work productively within cross functional areas.
12) Promote multi-skilling, the ability to think creatively and respond flexibly to challenges which arise in the work which teams do.
All core processes lead to one end goals: Creating & delivering something of value to the customer.
Table: Advantages and Disadvantages of Horizontal/Flat /Tall Organisation
|
Advantages
|
1. Quick decision making as there are fewer stages of hierarchy.
2. Low administration costs, freedom and autonomy to the maintain to operate.
3. This structure motivates the managers to accept responsibility & commit themselves towards organisational objects.
|
|
Disadvantages
|
1. Absence of control, effective coordination & proper reporting to superiors since of
decentralisation.
|