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What is a horizontal structure?

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A horizontal structure in a business means the company has little to no middle management and top managers interact directly with customers. This type of flat structure is fairly common in small companies.

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Top managers also have more close interaction with front line employees on a daily business in a horizontal structure compared to a vertical structure. One of the main reasons a small business starts with a horizontal structure is because it has a limited employee count. Because of the lack of mid-level managers, horizontal structures are typically less expensive to operate. Employee morale is also normally higher because of the close interaction with top management.

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