Without easy two-way communication, top management can become isolated and out of touch with how its plans affect core processes in the organization. Vertical management in a traditional organizational structureĪ main disadvantage of vertical management is that it limits information flow from the lower levels of the organization to the upper levels (like water, information flows downhill easily). Everyone knows who is in charge and assumes the job they do today will be the same next year or in five years. Workers in labor-intensive industries such as manufacturing, transportation, and construction need to follow established procedures and meet specific goals. In industries where processes and conditions are stable and where ongoing innovation is less critical, the vertical structure of management can still be very efficient. During the nineteenth century and much of the twentieth century, vertical management was highly structured with many layers of management (as depicted by a pyramid). Managers at different levels are free to focus on different aspects of the business, from strategic thinking to communicating information to operational efficiency. Vertical management, also called top-down management, refers to the various levels of management within an organization. Differentiate between the functions of top managers, middle managers, first-line managers, and team leaders.
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