Bob Koski’s business plan for Sun Hydraulics was successful because Bob created an environment that fostered creativity, an essential characteristic for this type of manufacturing business. Although I’ve never experienced working in a horizontal management organization due to the nature of my field, I can appreciate how Bob’s horizontal organization and working in teams created job satisfaction that increased employee self-motivation that ultimately increased productivity which resulted in the success of Sun Hydraulics in a competitive manufacturing market. However, I believe that horizontal management for Sun Hydraulics could inhibit Sun Hydraulics’ national and international expansion.
A decentralized structure, working in teams and communicating the organization’s goals can attract really talented creative employees who like to work in an environment that is not restricting. Employees in these organizations can make companies successful once the employees perceive that their skills and talents are well compensated and their job is designed with all or one of the five enrichment motivators.
Horizontal organizations that are successful and grow can become chaos since there is a decentralized structure. The total amount of employees, their various personalities and values can make communication very difficult. Hence the reason for Bob Koski limiting the total amount of employees in each location to be less than 250 which can inhibit the growth of the organization nationally since the maximum amount of employees may not be able to handle a large client or order. The cultural differences internationally can also hinder global expansion. Some cultures may not accept horizontal structures.
Although Sun Hydraulics was formed using a horizontal structure to attract creative talented employees, the jobs in this structure must be designed so that the employee will feel that the tasks of the job is significant to the organization, the employee can...