Question

Hi Class, So, why does differentiation occur in an organization? Distinguish between vertical and horizontal differentiation.

Answer 1

Answer:

Differentiation occurs because as organizations grow and become more complex, they establish a division of work. Vertical differentiation is a ranking of power with reporting relationships established to connect organizational roles and sub-units. Where horizontal differentiation are group roles according to task responsibilities, establishes division of power, and forms sub-units.