Question

what are the benefits of a hierarchical structure? What are the disadvantages?

Answer 1

The hierarchical structure is also known as a pyramidal structure. It is a kind of organizational distribution that consists of limiting different levels of subordination. The control of an organization depends on the responsibility and decision making power of the people that are part of each level.

Benefits of hierichal structure -

1) There are proper authority and control over employees. A hierarchical structure helps in the close supervision of employees through a narrow span of managerial control.

2) It helps in clear communication due to the chain of command which in turn leads to a clearer understanding of employee roles and responsibilities.

3) It helps to create accountability for actions or decisions at different management levels.

4) In a large organization, it is difficult for few people to control all areas in which the company is involved, thus the hierarchical structure of a company allows the division of work into various departments which gives opportunities to the employees to specialize and expertise in their field.

5) The workers who are part of the hierarchical structure of the company know what is next to achieve in the organization which keeps the employees motivated. This increases the overall efficiency and effectiveness of an organization.

Disadvantages -

1) It may cause a lack of collaboration. In hierarchical structure collaboration within the team occurs but collaboration outside the team silo can be difficult to accomplish. Most of the employees try to compete for power, instead of working together as a whole which results in a lack of collaboration.

2) It reduces innovation. If an employee approaches his direct manager with an idea and is rejected, then it discourages the employee from further sharing though his idea is good enough to generate revenue in the future.

3) It may create communication barriers as it disconnects the employees from top-level management. It leads to delays in communication vertically through levels and horizontally between teams.