¶ … 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...
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