Vertical organizational structures refer to an organization that has more levels of management, where managers have a narrower span of control.
ORGANIZATIONAL STRUCTURE
Organizational structure is defined as the vertical and horizontal configuration of departments, authority and jobs within a company (McWilliams, A., Williams, C. 2010). It is divided into two categories, vertical, also known as ‘tall’ and horizontal, also known as ‘flat’.
Vertical Structure (Tall Structure)
Horizontal Structure Flat Structure)
Horizontal organizational structures refer to an organization that has few levels of management, where each manager has a wider span of control.
Most of the large successful organizations often have a vertical organizational structure; however Google is not one on the list. Although Google is a highly successful organization, it maintains a horizontal organization structure.
More specifically, Google is currently using cross-functional organizational structure combined with a unique philosophy. This structure has a focus on team approach to management and is structured horizontally (Pavilion, 2013). The organization is flexible and able to adapt to changes in the market and external environment, which in this case can be classified to an organic organization.
Google has a weak line of authority due to the fact that the chain of command from top to bottom is short and the span of control is wide. The benefits of this include the short chain of command, which allows smooth communication from the upper management to pass down to the lower hierarchy.
The organizations using flat structures such as Google are seen to be more creative and innovative. According to their official site, they have purposely maintained a small-company feel, believing that every employee is a hand-on contributor, feeling comfortable sharing ideas and opinions, and everyone is equally an important contributor to Google’s success (Google.com, 2014). Google’s employees work as a team. The horizontal organizational management help the employees achieve the objectives that they set for themselves and for Google as well.
Communication is strongly encouraged between employees. Larry and Sergey, the CEOs have mentioned, “Our offices and cafes are designed to encourage interactions between Googlers within and across teams, and to spark conversation about work as well as play” (Google.com, 2014). The decentralization of authority in Google is high, employees are able to make their own decisions and share ideas, which is where job enrichment takes place. The company sees its managers as leaders who facilitate inspiration and empower employees. The company allows employees to track their progress towards their goals, and supervisors are also present to ensure to direct employees towards their own standards.
Google implements a method to authorize risk taking amongst employees called as the “70-20-10 rule”; It is emphasized that each day, employees must have 70 percent of dedication to the work assigned by the top management, 20 percent of each day devoted to new projects or ideas in relation to their core projects, and the remaining 10 percent of each day should ideally be committed to any new ideas that they want to pursue. Instead of through formal channels, Google encourages employees and managers to work with each other, as their management is focused through shared vision. (Frenz, 2014)
