Hierarchy

A system in which members of an organization or society are ranked according to relative importance or authority.

Advantages:

• Employee recognize defined levels of leadership within the organization.
• Hierarchy structures promote developing employees as specialists.
• Employees may narrow their field of focus and become experts in specific functions.

Disadvantages:

• Communication across different departments tends to be less effective than in flat organizations.
• Competition between department may occur as each department makes decisions that benefit its own interests rather than the organization's as a whole.

Notes