Hierarchical Organizational Structure

Описание: Hierarchical Organizational Structure:
A hierarchical structure refers to a company's chain of command, typically from senior management and executives to general employees. In other words, this structure applies to organizations with a sole leader and a flow of subordinates underneath them.

Advantages:

Clearly defined career and promotion path:
When your organization has a hierarchical structure, your employees are more easily able to ascertain the various chains of command. This allows them to know how they can advance within the company over time. Those with more experience will have a better chance of obtaining these advanced positions. The opportunity for promotion can be appealing to employees and because of this, they'll likely have higher morale, be motivated to perform better and in turn, increase your company's productivity.

Department loyalty
Companies with hierarchical structures are divided into various departments and teams. When employees are part of a team, they grow a sense of team spirit and loyalty. This can be beneficial for your company to ensure everyone works toward the same goal

Levels of control
Having a hierarchical structure helps employees understand the various levels of leadership. This is because management roles are more clearly defined in this type of pyramid structure. In having various levels of control, operations run more smoothly.

Clearly defined authority
Companies with a hierarchical structure have different levels of authority and power. This means employees will have direct supervisors who they can report to. This eases the flow of communication and ensures employees know who their direction and working orders are coming from.

Disadvantages:
• It can be costly
• Slow action and decision making
• Poor communication
• Department rivalry

It can be costly
Having a hierarchy means multiple departments which means having a multitude of managers and supervisors. The larger the number of senior management roles, the more you'll be paying your employees in yearly salary. This is because advanced roles typically yield higher wages. Employees in these positions tend to have a higher level of education, more knowledge and more experience, therefore, requiring a commensurate salary. In other words, a large corporate overhead could end up being costly to your business.

Slow action and decision making
With so many leadership roles in a hierarchical structure, the speed of decision making can end up slowing down. This is because all manager roles tend to be involved in many company-wide decisions. The greater the number of management roles, the harder it will be to get everyone in one room let alone, have them all on board with a sole decision. Because of the diverse personalities in a workplace, it is common for leaders to have differences of opinion as well as different ideas for the company. In contrast, a company with a sole executive would only need that executive's decision to make something happen.

Poor communication
Dividing employees into different departments and levels can lead to a lack of communication. This is because there are so many supervisors you'll need to get in contact with rather than one sole executive. Because everyone is broken up into various departments, they might not feel the need to communicate with others outside of their own team. In addition, different supervisors run their departments differently. This means they'll likely have their own set of rules and procedures for how things operate within their team. If one employee were to switch departments or collaborate with another team, the different sets of rules could create confusion.

Department rivalry
A company utilizing a hierarchical structure would mean various employees are divided into teams, groups or departments with particular specialties. These various departments could end up making decisions that only benefit themselves rather than the company as a whole. In addition, they could feel a sense of rivalry with another department because they were broken up to work independently of one another. This rivalry could hurt overall company morale and result in a more hospitable working environment.


Thank you for watching this video
Matrix Organizational structure is explained in our next video.
Watch it for more details
If you find this video helpful, don’t forget like and share our video and subscribe to Next Page Academy YouTube channel for more of such videos.


Follow us on Instagram

https://www.instagram.com/invites/con...

Follow us on Facebook

  / fb.nextpageacademy