Lateral Information Flow in Organizations

¶ … Structural Arrangements In the modern world, lateral relationships is continually being used by organizations as a viable means of communication and influence flows make up the new structures in organizations. Lateral organizational structures differ greatly from vertical structures that are always designed around power dynamics and only allow for vertical flow of information, from the top managers downwards to the lowest ranking employee. Under such arrangements, the top leaders bear the responsibility of making key decisions that decide the fate of the firm.

However, this is not ideal as there should be efficient and sufficient collaboration between workers in an organization. Workers strive to meet the same goals and the organization's vision so communication channels among employees should always be open. This can only be achieved under lateral structures. This paper, therefore, discusses the lateral structures that are used in organizations, the history of such organizational designs and their place in the contemporary organization. A summary of the weighty points will be presented at the end.

Organizations as Information Processors Gish (2014) opines that the reason for the adoption of lateral organizational structures is to achieve superior products and to increase productivity through the collaboration and sharing of information between the departments in an organization. This structure is founded on sharing of information. It leads to better products as the team members work closely together to come up with ideas unlike in vertical arrangements where workers do their tasks independently.

Lateral structures are designed in such a way that employees can present their thoughts and ideas without facing bureaucratic obstacles. Members of the organization openly communicate and the synergy of ideas leads to the development of superior products and services. That being said, several considerations have to be made to effectively run an organization using any organizational structure. The collaboration between workers not only leads to better products but also helps the organization to have better clarity and achieve its vision faster.

Clarity is achieved when employees are made aware of the goals of the firm and what roles each department is to play towards the achievement of such goals. With such openness, employees are motivated to be part of the success of the organization and thus contribute their part towards the accomplishment of such goals. The synergy ensures that everyone in the organization is laboring towards the achievement of set objectives.

This is not what occurs under vertical structures as top management always decides the direction the company goes and determines its operations. Vertical structures are hugely bureaucratic and flow of information may be hindered because of the power dynamics and the various ego struggles at play. In a vertical system, communication channels are such that one can only officially communicate with the immediate superior or immediate subordinate. Most of the time information is only relayed from top management to the subordinates.

This does not encourage discussion as the work of the subordinates is to execute what has been brought to the table by their bosses. A lateral system does however encourage sharing of ideas and insights between peers and between employees and bosses. The foundation of a lateral system is that individuals from all areas of specialization and departments are brought together in a project (Gish, 2014). This allows for the sharing of ideas drawn from several experienced people and this enhances the organization's performance.

Mohrman, however, posits that high technology companies have no option but to put in to consideration several pieces of information so as to effectively manage the inherent risks in high technology processes. It has been realized that in such set ups involving complex processes, coordination and goal-setting processes, rules and regulations must always be supplemented in other ways (Mohrman, Mohrman & Cohen, 1996, p.2). The creation of lateral structures and semi-autonomous teams help improve information flow.

In such structures, information can always come from any direction and you stand a better chance of getting a response from the concerned authorities. Performance is therefore greatly improved as no information is lost in the communication chain as is present in a vertical structure. Clarifications can be easily made as authorities are very accessible and may also be part of the team. This is especially true in the contemporary world where organizations appreciate that information flow is crucial in achieving the organization's goals.

Several organizations are slowly adopting this and this has greatly enhanced productivity and efficiency. Generally, an argument that organization structure has considerable bearing on productivity and overall performance holds water. Types of lateral Organizational Structures Jay Galbraith who was a specialist in organization design came up with several types of organizational structures (Galbraith, 1977). He believed that for an organization to be highly effective there should exist lateral affiliations across the firm. These relationships would form the basis through which members of the organization communicated with each other.

Such accessibility increased efficiency in various departments in the organization. The types of lateral organizational structures discussed by Jay Galbraith include: Mutual adjustments, task force, liaison role, team decision and managerial linking. They have different uses and have their own advantages and disadvantages. Mutual Adjustments Galbraith (1973) says that managers at the same level in the organization make joint decisions and so do not need to refer upwards. This is to mean that they have similar powers and can make independent decisions without referring to any superiors.

These managers wield the same influence and so can independently make adjustments to the operations of their departments as long as it is geared towards the achievement of the organization's goals. This not only save time but may result in improved operations since heads of departments are at a better position to know what would work under the prevailing conditions.

Comparing to a situation where a departmental manager would take instructions from a superior on what to do at his department, a lateral arrangement is seen to better serve the firm as the departmental heads are on the ground and know what would work best. Organizations consist of several departments led by departmental heads and they always have the same influence and authority in the firm. Such managers have the power to reach mutual agreements on what measures to take to drive the firm towards its goals and objectives.

This is advantageous since these managers know what would work in their departments. Also, the interdependence between departments in an organization cannot be understated. Mutual agreements are therefore the best option and mutual adjustments give the managers a platform to achieve this. Liaison Role This is another lateral structure and is aimed at the reduction of efforts towards coordination between interdependent departments (Galbraith, 1973).Two departments working on one project need a clear channel of communication.

The liaison model allows for the formation of one channel that is not only reliable but time saving. This is achieved through the appointment of a liaison officer that will promote communication between the two departments. Since not every member of the separate departments can communicate with each other, the liaison officer bridges this gap and opens communication channels. He collects information from the concerned parties and relays it to the intended recipients. The liaison officer needs to be an effective communicator so that no information is lost.

Information is easily relayed between the two departments without them having to see each other face-to-face. Ground rules to foster such communication will ensure quality communication. Sadly, the liaison officer may take advantage of the situation and pursue his or her own interests. This may lead to conflict as the decisions made in the organization may not be geared towards the advancement of the mission of the organization. Task Force This structure is applicable in any organizational environment.

When two or more departments in an organization need to reach a decision, representatives from the various departments come together to help in decision making. The decisions made are always informed since people with various expertises bring their views to the table. Group decisions tend to be better than individual decisions since they are seldom subjective and sentimental. Groups tend to look at the aims of the organization first before considering personal issues.

The decisions made are grounded on set rules set by participants and are therefore less likely to evoke conflict. Task force members also have the chance to ask other star players in their departments what the right course of action would be and this leads to a higher quality decision and eventually an improved organizational performance. The decisions made by task forces are adopted by all departments and this effectively eliminates hierarchy in the organization.

People from all departments can share views and ideas that will in turn help the firm tackle challenges and grow. This encourages sharing of knowledge and in the contemporary environment where the operational environment has become very dynamic, learning is very crucial if organizations want to have an edge. Taskforces can also be used in the development of policies in an organization or the investigation of problems. Experts drawn from the entire firm and investigate the issue at hand without prejudice and present a report.

The decisions made by a task force are binding to all members of the organization since they are deemed to be acting as representatives of all members of the organization. Managerial Linking Role Managerial linking role is another lateral structure. Galbraith proposes that financial controls are important if the organization seeks to integrate effectively. Financial control is used here to mean the way the firm organizes its use of finance and the checks and balances laid out to ensure that no misuse of the organization's funds is encountered.

All funds in an organization should be channeled towards the achievement of the organizations goals and objectives and not be used to achieve personal interests of employees. Budget allocation should be done in such a manner that 'managerial linking pins' are the ones who purchase goods or services for line managers (Galbraith, 1973). Line managers should be able to communicate properly with departmental heads in the organization.

The argument here is that the people who are better positioned to know what is exactly needed are line managers since they are on the ground. Line managers and departmental managers should thus collaborate well since they are interdependent. Collaboration among management also fosters understanding and a feeling that they belong in the company.

Someone who is consulted and who feels that his or her opinion is taken seriously and influences decision making in the firm will have more drive to deliver to the firm as they feel special and appreciated. This motivates them to work harder. Benefits of Lateral Organizational Structures Lateral structures benefit organizations in several ways.

Gish notes that the increased information sharing in the organization as well as the sharing of great ideas leads to performance improvement as employees are always up-to-date on project status, the direction of the firm and what different departments are working on. Trends in the organization are easy to note and keep track of and this allows employees to adjust accordingly. Also, organizations with bases in several geographical locations will find lateral structure more convenient.

It is important to note that no organization can thrive if there are no clear communication channels that enable different parties in the organization to pass and receive information. It is possible that different people with different areas of expertise can work together and generate ideas that will not only make the firm achieve its vision but also give it an edge in its operating environment.

In fact, members of the organization through the sharing of ideas can come up with ideas that can change the entire course of the organization. Information in an organization can be used for many purposes e.g. giving out instructions and the laying out of the map to be used to guide the organization. The map should only be arrived at after various views and situation-specific information from various departments have been availed.

It is crucial to note that involving all employees in the goal setting process is very important since it is only then that they will be enthusiastic enough to execute on the goals. With open communication channels, changes and alterations can also be easily made as different parties share their frustrations and insights that can ensure the firm remains on track. With sufficient informed ideas or information, the firm has a better chance of operating soundly and achieving set objectives and goals.

Inclusion of Multiple Voices Gish (2014) believes that a lateral organization structure affords an organization the chance to have various views on any matter. The structure also reduces the problems arising due to power dynamics. Also, employees are more fulfilled as they feel appreciated in the firm as their views and ideas are considered in the decision making process. An inclusive company achieves its goals more easily since the concerned parties put more efforts into their projects since they know that they will always be appreciated in the organization.

The idea of inclusion can not be understated. Employees actually perform better when they know that their efforts are appreciated in the firm. A sense of community also motivates them to achieve so as to remain part of the group. The ability of an organization to accommodate divergent views is also very important. A lateral structure allows teams working on projects to agree on the best course of action based on ideas presented by one of them.

Brilliant insights and ideas can therefore be easily incorporated while the not so good ones can be done away with or redefined to suit the goals of the organization. Where employees understand that ideas adopted by teams affect all players in the organization, they are likely to bring forth more quality ideas to the table as they are aware it will also benefit them. Collaboration A lateral structure enhances collaboration in an organization (Mohrman, Mohrman & Cohen, 1996).

As earlier discussed, members of an organization can collaborate effectively in a way that benefits everyone if the organization's structure allows them to do so. The accounting and Finance department, for instance, can work with the marketing department and develop policies that can position the firm above competitors in the market place within a reasonable budget and thus improve operations of both departments. Collaboration is crucial as it allows members to share in the organization's vision.

Leaders and other influencers in the firm should take care to motivate all people to put in maximum effort towards helping the organization achieve its objectives. There are also some tasks in a firm that can only be done if the people from various departments collaborate. Such tasks require information from several departments. A lateral structure ensures that there are systems in place to enable such collaboration. It would be hard to handle such tasks in an organization that operates under the vertical structure.

Improved Job Satisfaction and Motivation among Employees Grimsley (2014) argues that job satisfaction and motivation can be greatly improved by empowering employees and opening up more channels of communication. Employees are empowered when they have the independence to communicate in a free manner. They are therefore able to arrive at decisions to do certain things or not do certain things or oppose or reject certain acts outright when they deem them unfair or discriminatory. Open communication is one of the several factors that.