What is the balance between vertical and horizontal structure in Malard Manufacturing Company? Is it appropriate that department managers always turn to the executive vice-president for help instead of each other? An organizational structure clarifies authority distribution and responsibilities among employees. There are generally two types of organizational structures.
Vertical
Horizontal
The vertical management approach is a hierarchical organizational structure where information and orders are passed down from top management to lower levels. Employees report directly to the top level of the organization. In Mallard Manufacturing Company, the vertical approach is rarely used. Departmental managers must consult with the executive vice-president before making important decisions. This centralized power to the top management creates a high control and low autonomy environment. On the other hand, the horizontal management approach, also known as a flat organizational structure, has minimal or no middle management levels. Instead, employees work in teams where everyone has input and responsibilities aren’t clearly defined. Self-managing teams in this type of organization don’t require a middle manager or supervisor above them.
The Mallard Manufacturing Company has distinct departments that specialize in various tasks, such as research and development, engineering, and marketing. These departments operate independently without coordination or communication with each other, leading to the need for review by the executive vice-president. As a result, the company has a flat and horizontal structure with limited vertical hierarchy. The executive vice president, Julie Crandell, maintains tight control over the organization. Department managers must obtain her approval before making significant decisions or changes. However, this approach has overburdened Julie with a large span of control and limited time to handle it. Moreover, she faces challenges managing inexperienced department managers who are becoming uncommunicative and frustrated with each other. The case study reveals a lack of communication between Julie and other department managers.
In my opinion, it is not suitable for departmental heads to seek assistance from the executive vice-president instead of their team members. This conduct may cause lower-ranking employees to feel unappreciated and could lead to decreased motivation and increased turnover. Furthermore, it can obstruct decision-making and impede the organization’s ability to adapt swiftly to changes in the business environment. On the other hand, adopting a horizontal approach fosters teamwork, enhances communication within the organization, and promotes a sense of value among all employees. Ultimately, this will positively influence the organizational culture.
Julie Cardell is requested to provide an outline of the actions she plans to take in the next 30 days. These measures are aimed at resolving the issue and ensuring a smooth production process for CV305.
Julie Cardell is currently facing a time constraint as she doesn’t have sufficient availability to supervise the production of CV305 due to her busy schedule. Currently, the responsibility of informing Julie Cardell about crucial decisions lies with all department managers.
My plan, as Julie Cardell, would be to delegate all responsibility for overseeing market demand, production design, production plan, and marketing plan of CV305 to a specialized task force. This group of individuals will handle all operational tasks on my behalf, allowing me to focus on more strategic areas. Once this team takes charge, I will overhaul the current management style, moving away from a vertical approach. By implementing a horizontal approach, communication and sharing between departments that has currently been halted will be increased.
Lastly, in order to oversee the entire process, I will schedule regular meetings with the department heads and team leaders of the specifically formed team.
What changes should be made to prevent future problems in new product development? Could reducing the span of control help? Would assigning a project manager to coordinate CV305 be beneficial? Or perhaps establishing a task force? Before suggesting the appropriate structure for Mallard Manufacturing Company, it is important to address the current issues this organization is facing. Currently, there is a lack of communication between departments due to a large span of control, and the research & development departments are keeping their development plans secret. The market is highly competitive, and Mallard is struggling to introduce their product, resulting in customers turning to competitor products. The vice-president has limited time to communicate with each department head individually, even though she will make the final decision. Additionally, several department managers are inexperienced and new to the organization. In my opinion, these issues can be resolved by implementing a horizontal structure, reducing the span of control, and empowering line managers or departmental managers to make urgent decisions on their own behalf.
This will undoubtedly lead to increased communication among departments, with departmental managers beginning to share their development work and future plans with other departments such as marketing, production, and engineering. It will also foster a sense of ownership and responsibility towards departmental work, promoting teamwork rather than individual departmental focus. This approach can help alleviate the two problems outlined in bulletin numbers 1 and 2. Currently, the vice-president is burdened with major decision making and a lack of time. However, adopting a horizontal approach can address this issue. By giving more authority to departmental managers, and considering the presence of inexperienced managers, it may be advisable for Mallard to hire a specific group of individuals or establish a special task force to independently oversee all department activities.
