Tuesday, April 29, 2014

Vertical Integration

In the last byte, we began our discussion on integrations and the role it plays in an organization. In today's byte, we look at vertical linkages.

Vertical linkages as mentioned earlier used to integrate activities up and down the organizational chain of command. Many structural devices can be used to achieve vertical linkages viz - hierarchical referrals, rules and procedures, plans and schedules, positions added to the structure of the organization, and management information systems.

The vertical lines on an organization chart indicate the referral up and down the organization. While work is delegated down the organization chart, when an employee has a doubt he refers up to the chart for consideration and resolution.
The various vertical integration linkage mechanism help the manager have a wider span of control. The employee handbook, procedures etc reduce the demand on the manager's time to focus each employee  and could choose to manage only in exceptional situations.
For a greater understanding, one would need to think of each linkage mechanism.

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