Horizontal specialization in a company refers to what?

Horizontal specialization in a company refers to a division of labor based on specific functions. This concept emphasizes the distribution of responsibilities among employees, allowing individuals to focus on specific tasks that align with their expertise or role. For instance, in a company, you might have specialized teams for marketing, finance, production, and human resources. Each of these departments functions somewhat independently yet collaborates towards the organization’s overall goals.

This specialization can enhance efficiency and productivity because employees develop a deeper understanding of their specific areas, leading to improved performance and innovation. Additionally, it allows for the potential for experts in particular fields to emerge within the organization, benefiting both the personal development of employees and the organization as a whole.

The other options highlight aspects of organizational structure and behavior but do not accurately capture the essence of horizontal specialization. For example, executive decision-making processes revolve around leadership roles rather than the distribution of functions across a workforce. The layering of authority pertains to the hierarchical structure within an organization, which does not directly relate to how tasks are divided among employees. Lastly, outsourcing operations refers to contracting external agencies for certain functions rather than organizing labor internally, which is distinct from the concept of horizontal specialization.