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HORIZONTAL CONFLICT RESOLUTION PROCESSES - are management processes and corporate management's approach to resolving conflicts among business units. [Source: M. Porter] HORIZONTAL HUMAN RESOURCE PRACTICES - human resource practices that facilitate business unit cooperation, such as cross-business unit job rotation, management forums, and training. [Source: M. Porter] HORIZONTAL ORGANIZATION - an organizational structure which overlays a set of mechanisms on the vertical organization to ensure that interrelationships yielding a competitive advantage are exploited. The result is independent business units that are connected by organizational devices and a set of shared values. Horizontal organization can be divided into four broad categories: horizontal structure; horizontal systems; horizontal human resource practices; horizontal conflict resolution processes. [Source: M. Porter] HORIZONTAL STRATEGY - a coordinated set of goals and policies across distinct but interrelated business units. It is required at the group, sector, and corporate levels of a diversified firm. It does not replace or eliminate the need for separate business units and business unit strategies. Rather, horizontal strategies provide for explicit coordination among business units that make corporate or group strategy more than the sum of the individual business unit strategies. Without a horizontal strategy, there is no convincing rationale for the existence of a diversified firm because it is little more than a mutual fund. Horizontal strategy, not portfolio management, is thus the essence of corporate strategy. [Source: M. Porter] HORIZONTAL STRUCTURE - refers to temporary or permanent organizational entities that cut
across business unit boundaries, supplementing the business unit structure.
[Source: M. Porter] HORIZONTAL SYSTEMS - management systems with a cross business unit dimension, in areas such as planning, control, incentives, and capital budgeting. [Source: M. Porter] HORIZONTAL UNIT - see Strategic Horizontal Unit and Horizontal Organization. HUMAN RESOURCE MANAGEMENT - includes supporting activities such as: recruiting; training; hiring; motivation programs; and compensation-related activities. HUMAN RESOURCE COSTS - refer to people costs, either salaries or salaries plus benefits. The two other activity costs are fixed asset costs and the costs of purchased operating inputs. |
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