Here is another Organogram – Top Down Structure that can be used to represent organization structure in an easy to grasp way. This template allows you to create organograms with left top down structure and also to represent vertical management structure of the organization. This organogram template is created using MS PowerPoint 2003 so that anyone can easily use it. You need to have MS PowerPoint 2003 or later version installed on your PC before you can plan to use this template.
For a tremendous future growth of any business a proper organizational structure is important. There are lots of different organizational structures that business owners are adopting according to the size and nature of the business. Vertical organizational structure is one of them and is very common in the business world. A vertical organizational structure is based on a hierarchy with several layers of management. A vertical organization structure is solely relay upon a centralized decision making and where the communication has to go through several layers of management. In a vertical organizational structure, the authority is in the hands of top management and the communication flow is moving in a chain that is from top management to middle management and then to a lower level of employees. Middle management is acting like a bridge between top management and lower level workers. The structure emphasizes on hierarchy and the relations between employees are rigid and strict and all workers are classified into different levels of jobs on the basis of their specialization.
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Mertis and Demerits of Vertical Organization Structure
A vertical organizational structure is also known as tall structure and allows owners of the company to have a strong control over the activities of the company. In vertical organizational structures, there are proper boundaries, organization culture and rules for the workers making it a civilized and controlled work environment where workers have an opportunity to work in a stable environment. As workers are assigned on the basis of expertise therefore a vertical organizational structure offer high efficiency and productivity but unfortunately the workers are not innovative and has poor communication skills. Due to a long chain of command, the communication process is very slow, ineffective and usually results in wastage of time. The employees or workers of a vertical organization structure are almost satisfied because they have a job security and a specified path for getting promotions. The success of vertical organizational structures is totally dependent on the upper management, if the upper management is weak, it means there will be a poor decision making and hence a poor and frustrated work force.
- The structure is efficient, controlled and quick in decision making.
- Employees have a clear path of responsibilities with a specific job position.
- There is less need of learning new skills and abilities.
- The work environment is stable and stress free with defined boundaries and rules.
- Due to centralized decision making, a vertical organization structure is less innovative.
- The relationship between workers is rigid and strict.
- A vertical organization structure has several levels of management and therefore the communication is slow and ineffective.
- A vertical organization structure is based on a large number of managers and therefore it cost the organization a lot as managers have high salary packages.
- Sometimes, in vertical organization structures worker feel stifled and sometime never work efficiently.
A vertical organization structure is a very common and conventional type of organizational structure and is used by lots of private and government companies and educational sector. Overall structure is effective and efficient and by using certain advanced strategies, business owners can eliminate the flaws of vertical organization structure.