There are a lot of businesses out there that are organized much like a pyramid. That means that the big decisions are usually made by the higher-ups and then followed through by other employees. Is this the best way to conduct business these days? Take a look at the horizontal business structure.
A horizontal business structure is not necessarily completely flat.It still takes on the look of a pyramid, but it is a bit different. It is a broader and flatter pyramid shape. This structure generally has a much shorter chain of command and the decision making is done by everyone involved.
By adopting a horizontal business structure, you could:
- Have more flexibility within the company
- Have easier decision making
- Encourage your employees to give their input
- Solve problems as a group
- Pay managers much less money, in turn increasing profits
While these all seem to be great advantages of the horizontal business structure, there are definitely some challenges:
- Not suitable for all business types
- Doesn’t provide much room for moving up in the company
- Responsibilities may be confused
If you want to achieve success with a horizontal business structure, it is really important that you are open with the entire staff. The leaders in the company will need to possess great skills in leadership to encourage employee development across the board. You should also make sure that all employees are trained properly in order to do their particular jobs.
A good way to ensure that you are successful in this type of business structure is by setting goals for your business to ensure that your employees are working together toward those goals