Classification of Organizations - (Flow of Information) Lecture 03

Flow of information within an organization can be divided in to two groups.

1. Vertical flow (top-down or bottom up)
2. Horizontal flow

Vertical flow

This is where two or more individuals at different levels of the corporate hierarchy communicate with one another. At such a point one would automatically become the superior while the other becomes the subordinate.

Example:

A line manager reports to the production manager.

Horizontal flow

This is where two or more individuals at the same level of the corporate hierarchy communicate with one another. At such a point neither there is a superior nor subordinate.

Example: 

A marketing manager discusses a marketing plan with the production manager.