Advantages and Disadvantages of Hierarchical Organisational Structure

Hierarchical organizational structure puts the authority and responsibility on the top side of the company and makes them flow down from the top to the lowest level gradually. This model works like a pyramid and centralizes all power and duties on people who stand on the peak of the organizational structure. To assess this type of management style, it has advantages as well as disadvantages.

Create Your Own Org Chart Right Now

Advantages of Hierarchical Organisational Structure

Everything in Hierarchical Organisational Structure is going to be organized and stabilized and there is less likely to get authority and obligation disordered. All the employees know exactly what position they are in and also know what job they have to do. Fixed rules of intra-organization procedures and structures are set and usually written in a language, which leaves no discretion for interpretation. Most importantly, under this organizational structure, goals are clearly defined as turning out to be suitable for all type of businesses. Also, the objective will be clear so the task can be done in time.

Disadvantages of Hierarchical Organisational Structure

However, it barely allows flexibility, long-term-planning, and creativity, ending with stiffness and dictatorship in management. Some leaders may be overburdened while some coordinates stay idle; some departments may pay too much attention to local target and interests but ignore overall objective and interests; schedule of the whole project might be affected extremely when some leaders are out of work. Moreover, this hierarchical organizational structure leaves little communication between employees causing a lack of team spirit. So workers may be jealousy when one gets promoted. They may not agree on the changes within the company and unwisely express that. This way, moral of an organization is going to get worse.