- Organizational charts are the embodiment of a traditional way of structuring a large organization
- They communicate the formal relations between organizational members and propose how decisions should be made.
- Typically the leader is at the top and the structure facilitates some oversight from the top
- A standard organization chart emphasizes formal vertical relations
- But what if a chain of jobs transforming raw materials to have products and then to products is done by multiple people: this is called horizontal coordination
Coordination is not always planned for example if a CEO uses public transport rather than a car she may meet a subordinate coincidentally he might be eager to share his ideas about the organization.
Informal coordination events like this leads to a mess:
- no neat order
- no oversight,
- no efficiency
- People tasks and coordination efforts tumble over each other
- There is a lot of overlap
- All these features impact on a leaders ability to coordinate