Vertical and Horizontal Differentiation | Organizational Design | MeanThat
Summary
TLDRThis video script discusses the concepts of vertical and horizontal differentiation within a restaurant's organizational structure. It uses a pyramid model to illustrate the hierarchy, with roles like bartenders, servers, dishwashers, chefs, and kitchen assistants at the base, managed by dining and kitchen managers. The script explains that horizontal differentiation is about grouping employees by their tasks, while vertical differentiation is about authority and responsibility, with higher levels in the pyramid having broader oversight and decision-making power.
Takeaways
- 🏢 The video script discusses the concepts of vertical and horizontal differentiation within an organizational structure, using a restaurant as an example.
- 📈 Horizontal differentiation refers to the grouping of employees and resources based on their tasks or functions.
- 🔺 Vertical differentiation is about the hierarchical arrangement of employees and resources based on their authority and responsibility within the organization.
- 👤 The script outlines various roles within a restaurant, from bartenders and servers to managers and owners, illustrating how they fit into the horizontal and vertical dimensions.
- 🍸 Bartenders, servers, dishwashers, chefs, and kitchen assistants are considered lower-level employees with specific tasks and limited authority.
- 👩🍳 Kitchen managers and dining room managers have authority over their respective areas and report to higher-level management, showcasing vertical differentiation.
- 👔 The restaurant manager has overarching responsibility and authority, overseeing the entire restaurant's operations and staff.
- 🏛️ The owner is at the top of the hierarchy, often overseeing multiple restaurants and interacting primarily with the restaurant manager.
- 🔄 The video script uses a pyramid structure to visually represent the hierarchy and differentiation within the restaurant's organizational structure.
- 📊 Understanding horizontal and vertical differentiation is crucial for effective management, as it helps in assigning roles, responsibilities, and authority within an organization.
Q & A
What is the purpose of the video?
-The purpose of the video is to explain the concepts of vertical and horizontal differentiation within an organization, using the example of a restaurant's hierarchical structure.
What does the term 'horizontal differentiation' refer to in the context of the video?
-Horizontal differentiation refers to the grouping of employees and resources according to their tasks, which is demonstrated by the different roles and responsibilities of employees such as bartenders, servers, dishwashers, chefs, and kitchen assistants.
How is the term 'vertical differentiation' explained in the video?
-Vertical differentiation is explained as the grouping of people and resources according to their authority and responsibility within the organization. It is illustrated by the hierarchy from lower-level employees to managers, restaurant managers, and finally the owner.
What is the role of a bartender in the restaurant hierarchy described in the video?
-In the restaurant hierarchy, a bartender is a lower-level employee responsible for serving drinks and is placed under the dining room manager.
Who is the server's supervisor in the restaurant's organizational structure?
-The server's supervisor in the restaurant's organizational structure is the dining room manager.
What is the difference between the tasks of a dishwasher and a chef according to horizontal differentiation?
-According to horizontal differentiation, a dishwasher is responsible solely for washing dishes, while a chef is responsible for cooking. This difference in tasks is what distinguishes their roles within the organization.
Who has authority over the kitchen staff in the restaurant hierarchy?
-The kitchen manager has authority over the kitchen staff, including chefs, dishwashers, and kitchen assistants.
What is the role of the dining room manager in terms of vertical differentiation?
-In terms of vertical differentiation, the dining room manager has authority and responsibility over the dining room staff, which includes bartenders and servers, and reports to the restaurant manager.
How does the restaurant manager's role differ from that of the kitchen and dining room managers?
-The restaurant manager has a broader scope of authority and responsibility, overseeing the entire restaurant including both the kitchen and dining room operations, whereas the kitchen and dining room managers focus on their respective areas.
What is the significance of the owner's position in the restaurant's hierarchy?
-The owner's position at the top of the hierarchy signifies ultimate authority and responsibility for the entire business. The owner may have multiple restaurants and communicates with the restaurant manager to oversee operations.
How does the video script illustrate the concept of authority in a hierarchical structure?
-The video script illustrates the concept of authority by showing how each level of the hierarchy has increasing responsibility and decision-making power, from individual tasks at the lower levels to overall management and ownership at the top.
Outlines
🍽️ Understanding Vertical and Horizontal Differentiation
This paragraph introduces the concepts of vertical and horizontal differentiation within an organization, using a restaurant as an example. The speaker designs a hierarchical structure, placing employees such as bartenders, servers, dishwashers, chefs, kitchen assistants, managers, and owners in a pyramid. The horizontal dimension represents the grouping of employees and resources based on their tasks, moving from bartenders to servers, then to dishwashers, chefs, and kitchen assistants. Each role has distinct tasks, illustrating horizontal differentiation. The vertical dimension, on the other hand, represents the grouping based on authority, with lower-level employees at the bottom and the owner at the top, showing the chain of command and responsibility within the organization.
🔍 Exploring Authority and Responsibility in Organizational Structure
In this paragraph, the focus is on the vertical differentiation within the restaurant's organizational structure. It explains that each level of the hierarchy has different levels of authority and responsibility. Lower-level employees like bartenders, servers, dishwashers, chefs, and kitchen assistants are responsible for specific tasks within their roles. As one moves up the hierarchy, the authority and responsibility increase. Kitchen and dining room managers oversee the employees under them, while the restaurant manager has authority over the entire establishment. The owner, at the top, has the ultimate responsibility and authority, often overseeing multiple restaurants. This paragraph emphasizes the importance of understanding the roles and responsibilities at different levels of an organization's structure.
Mindmap
Keywords
💡Vertical Differentiation
💡Horizontal Differentiation
💡Organizational Structure
💡Authority
💡Responsibility
💡Tasks
💡Pyramid Structure
💡Bartender
💡Server
💡Dishwasher
💡Chef
Highlights
Introduction to the concept of vertical and horizontal differentiation in a business context.
Designing a restaurant hierarchy to illustrate organizational structure.
Positioning of a bartender in the restaurant hierarchy.
Server's placement in the hierarchy and their relationship to the dining room manager.
Dishwasher's role and its position in the organizational pyramid.
Chef's role and how it fits within the kitchen hierarchy.
Kitchen assistant's responsibilities and their place in the hierarchy.
Kitchen manager's authority and its position above kitchen staff.
Dining room manager's role and its position in the hierarchy.
Restaurant manager's overarching responsibilities and authority.
Inclusion of the owner in the hierarchy and their strategic role.
Explanation of horizontal differentiation based on tasks.
Illustration of how tasks differ across horizontal levels in the hierarchy.
Concept of vertical differentiation based on authority.
Difference in responsibilities and authority as one moves up the vertical hierarchy.
The restaurant manager's role in overseeing the entire restaurant operation.
The owner's strategic position and interaction with the restaurant manager.
Summary of horizontal differentiation focusing on task grouping.
Summary of vertical differentiation focusing on authority and responsibility.
Transcripts
find all our courses admin dead calm in
this video we are going to learn what
does it mean to say vertical and
horizontal differentiation but at first
in order to do that we are going to
design sort of a restaurant I have
written down a rows or or our employees
that we are going to have in a
restaurant and we should order them into
this nice pyramid this alterative
pyramid so let's see we have we have it
first we have a bartender so we have a
bartender so what smooth bartender
somewhere over here it should be
probably on the bottom now we have a
server well it most likely will be
somewhere next to it so let's give it
here now we have a dishwasher so let's
do it again somewhere over here then we
have a chip and we have a chef then we
still have this this workforce so it's
going to be kitchen assistant and then
we are moving now we already have a
manager's so let's see a kitchen manager
we have a bartender or server dishwasher
chef kitchen assistant hmm so it seems
like a kitchen manager should be
somewhere somewhere about somewhere
about here somewhere about here and then
we have a dining room manager and that
should be somewhere about here now we
have a restaurant manager now we have a
restaurant manager and I would even add
one more I would even add owner here and
you will see why later on so older over
here now let's draw it let's draw it we
have a bartender's which are responsible
under the dining room manager server as
well then dishwasher chef and kitchen
assistant are responsible under the
kitchen manager and then our dining room
manager and kitchen manager are
responsible under restaurant manager and
then there is some owner who owns
several restaurants and in
of them he assigned a restaurant manager
so he's just communicating with this one
person so there we have it we have drawn
a sort of hierarchical structure within
this organization and when we look at it
we start to see two dimensions we have a
horizontal dimension which is over which
is over here so let me just call it for
now let's go it just horizontal
horizontal horizontal dimension and then
we have another one which is over here
and that is of course a vertical
dimension so let me for now call it just
vertical vertical now let's think what
difference when we go horizontally so we
start over here and we first have a
bartender then we move further and we
have a server then we move further and
we have a dishwasher then we move
further and I have a chip and finally a
kitchen assistant what differs is tasks
so here we are moving along the tasks so
here we have a tasks and that is what we
call horizontal differentiation so
horizontal differentiation
differentiation it's horizontal
differentiation is basically grouping
employees and resources according to
their tasks so we are grouping we are
grouping according to according
according to two tasks and that is the
idea behind the horizontal
differentiation even if we go one level
up and are moving over here we have a
dining room manager and then we have a
kitchen manager so still it's different
kind of a task that person is is holding
now when we go to vertical dimension
let's try to see it we have it first
this is sort of and
to use a brush so we have these sort of
lower-level employees then we have a
managers and then we have a restaurant
manager and finally we have an owner
well what the difference is what we call
a out Dority so according to out Dority
so and let me write it down here out
thority so we are again grouping sort of
people and resources according to their
out Dority according according to
alternate because these people right
over here are responsible just for a
very very small part of a restaurant
bartenders are responsible only for
their bar servers are responsible only
for serving customers dishwashers only
for washing dishes chefs only for
cooking and assistants only for
assisting during cooking but when you
move one level up then the people over
there have much more of a responsibility
and much more of an authority kitchen
manager has an authority over all these
guys over here and dining room manager
has authority over the world dining room
and then when we move even one level up
the in the vertical dimension and we are
we are doing the vertical
differentiation differentiation then you
see that the restaurant manager has an
authority and responsibility over the
wall restaurant and that is the wall
trick the horizontal differentiation is
talking about grouping of people and
resources according to their tasks and
then in the vertical differentiation we
are grouping and differentiating
according to all thority
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