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. Vertical Division of Labour
The vertical division of labour is concerned primarily with apportioning authority for planning and decision making. A couple of key themes or issues underlie the vertical division of labour.
Autonomy and Control. The domain of decision making and authority is reduced as the number of levels in the hierarchy increases. A flatter hierarchy pushes authority lower and involves people further down the hierarchy in more decisions.
Communication. As labour is progressively divided vertically, timely communication and coordination can become harder to achieve. As the number of levels in the hierarchy increases, filtering is more likely to occur.
B. Horizontal Division of Labour
The horizontal division of labour involves grouping the basic tasks that must be performed into jobs and then into departments so that the organization can achieve its goals. Just as organizations differ in the extent to which they divide labour vertically, they also differ in the extent of horizontal division of labour. A couple of key themes or issues underlie the horizontal division of labour.
Job Design. Job design is an important component in the horizontal division of labour. The horizontal division of labour strongly affects job design and it has profound implications for the degree of coordination necessary. It also has implications for the vertical division of labour and where control over work processes should logically reside.