The Horizontal Division of Labour works on the basis of allocating staff resources to areas that require those skills. Furthermore, the division type also clearly specifies different department/branches that exist in an organisation; this can also extend further to project groups.
The division of labour also distinguishes between employee units and production line units where the employees use their knowledge and training to coordinate the activities and operations of the production line units, in order to deliver goods and services to the consumer.
Generally, the Horizontal Division of Labour works effectively in an organisation such as Tesco, where there is a need for regional managers and its departments to take control of the differences in local markets - using their skills and experience to deliver a quality service to consumers.