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What is the difference between a vertical and horizontal model for business?

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Quick Answer

A major difference between a vertical and horizontal model for business is that vertical models have many levels of management and supervision, while horizontal models are usually much smaller organizations with fewer management levels. Vertical business models have a large chain of command spanning from the top of the command down to the bottom of the organization, according to the Houston Chronicle.

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Full Answer

Until very recently, vertical business models have been the common models used by most companies. Vertical business models have clear and concise layers of management and defined responsibilities for each different level. The clear function of each level also shows the possible ladder of promotion for employees of the company. Manager levels and above typically have control over those beneath them.

Horizontal business models have increased communication between managers and employees, allowing for better employee happiness levels and cooperation between management and employees. The smaller amount of command chains allow horizontal business models to make decisions faster and with better quality than that of companies with a vertical business model. These horizontal business models also keep the general cost of the company down with fewer management levels to pay. Horizontal business models may hinder some employees with aspirations for promotion, with fewer levels to gain in the company, states the Houston Chronicle.

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