Depicting the Management Structure 
Depicting the Management Structure
Definition
You can use the management structure of the enterprise to define the factors that are most important in determining internal organization.
Structure
If management is structured by enterprise area (purchasing, production, sales, and so on) and if responsibility for these business units is divided among several management executives, the main view of the enterprise is process-oriented, or horizontal.
Conversely, if the management of the business is structured by strategic business unit, and the responsibility for the results from the different business units is clearly assigned to individual executive areas, the main view of the enterprise is vertical.
Many enterprises contain both horizontal and vertical management structures.
Vertical management is responsible for the markets it supplies (customer groups, application areas, and so on) and for the revenues generated, while production management is responsible for production processes and the costs they incur.
