Organization Theory and Design - Chapter 6, Daft
How to set up a horizontal structure in your organization. The theory behind such a structure.
Organization around core processes.
Shift towards horizontal structure during re-organization
Eliminates vertical hierarchy and departmental boundaries
Structure is created around cross-functional processes
Self-directed teams, not individuals are dominant players
Process owners are responsible for entire process
People on the team are given authority for decisions
Can increase organization’s flexibility
May harm performance if critical processes are not correctly defined