Posted by Satyendra on Dec 8, in Management 0 comments Comparison between Hierarchical and Flat Organization Structures Organizations can vary in the way they are organizationally structured. The structure of an organization is very important for achieving maximum productivity, managing individual work needs and reaching of corporate goal and objectives.
Hierarchical structure of an organization usually has vertical levels leading up to the top head — the CEO or Managing director. As long as the business hierarchy has enough space for the managers to administer benevolently and employees to communicate effectively, it always comes with several advantages.
Any organization that has more than a few employees, and that is developing quite fast should consider forming a hierarchical structure for its business.
The following post defines abusiness hierarchy, levels and roles of business hierarchy and finally, the advantages of a hierarchical organizational structure.
What is a Business Hierarchy? Almost all organizations follow the traditional business hierarchy structure where the emphasis is placed on a top-down reporting structure.
An organizational structure is administered to delineate lines of communication, roles and responsibilities, policies and authority. There are fundamentally two types of Hierarchy that companies follow — Flat and Hierarchical structure.
However, we are here to discuss the advantages of the latter in business, be it small or large. A traditional organization hierarchy looks like a pyramid where the narrow top comprises of the top level management such as CEOs, CFOs, General Managers, etc.
The communication flow is top-down where each level acts as the intermediator between its previous and next. In a hierarchical organization structure, every employee except the CEO is a subordinate to someone else.
And each level consists of a number of entities that descend. Although many businesses over the years have moved away from the traditional hierarchy to structures that reflect team coordination and external networks, the hierarchy still remains the same top-down with slight variation in designation and communication.
Keeping the reporting relationships and functional interactions between employees and their supervisorsin mind, a typical organization chart outline3 levels of business hierarchy. They are; Top or Senior Level Management — They are the personnel who controls and manages theoverall They create visions, long and short-term goals and companies policies, and are accountable to the company stakeholders and thegeneral public.
They also bear the profit and losses of the company depending upon the share percentage. Middle Level Management—They are the senior heads of different divisions such as managers, branch heads, regional head etc.
They are the backbone of the company and devote crucial time in the expansion of the business. First Level or Operational Managers — They are company staffs who monitor the day to day activities of the organization such as sales, marketing, promotion, production, manufacture etc.
They are responsible for the product and service quality and quantity. Team leads, office managers, department head, and supervisors are part of this hierarchy level.
Advantages of A Hierarchical Organizational Structure 1. There Is Proper Authority and Control Over Employees In a hierarchical structurefunctional interaction ladder ascends from top level management.
Within the pyramid, departments are assigned with clear roles, responsibilities, and goals. They are also assigned with effective managers for administrative purpose and quality control. With this type of vertical hierarchy, employees will know whom, how and when to report.
They will also be aware of their duties and roles towards their subordinates and peers. A medium sized IT company might have 3 marketing department and two project development department.
The marketing departments might have a deputy manager, 3 team leads, 3 associate team leads and 12 business development executives whereas a project development department might have a deputy manager, head project developer, 2 project team-leads and 2 teams of 7 project development executives.
Here the executives report to the associate team leads and project team leads,who in return report to their team leads and projects heads respectively; both marketing team lead and project head report to the deputy manager, who directly seek guidance from top-level manager.
There Will Be More Interdepartmental Loyalty As employees work together to fill a common role, common goal and common purpose, they create a bond and develop trust while contributing towards the goals.
Every department over the time has specific jargons for communication which help bind the people in that division effortlessly. A precise hierarchical structure also eliminates misunderstanding between employees when it comes to reporting, updating, leading or heading projects.
Employees, when they face similar challenges, help each other grow by sharing insights and experiences.Advantage – Clear Chain of Command. In an hierarchical structure, members know to whom they report and who reports to them.
This means that communication gets channeled along defined and predictable paths, which allows those higher in the organization to . Matrix Structure Advantages.
The advantages of a matrix structure include: Individuals can be chosen according to the needs of the project. The use of a project team which is dynamic and able to view problems in a different way as specialists have been brought together in a new environment. The advantages of tall organizational structures are more opportunities for advancement and more specialized managers; the disadvantages are higher costs and reduced empowerment.
Organizational structures play a key role in effective communication and decision-making. A tall organization structure. 11 Key Advantages and Disadvantages of a Flat Organizational Structure. Economy; Jul 7, List of Disadvantages of a Flat Organizational Structure.
the flat organization structure also has its share of advantages and disadvantages. Whether or not it is for your business, it depends on the size and type of .
Jun 30, · Organizational structure is one of the keys to maximizing efficiency and productivity at your workplace, and it can have tangential benefits such as boosting employee motivation. A hierarchical business structure is a traditional approach to organizing a business where emphasis is placed on top-down reporting relationships.
A flat organization (also known as horizontal organization) has an organizational structure with few or no levels of middle management between staff and executives. An organization's structure refers to the nature of the distribution of the units and positions within it, also to the nature of the relationships among those units and positions. Tall and flat organizations differ based on how. What Are the Benefits of Hierarchical Network Design? amount of equipment needed to set up a network initially to only what is absolutely necessary given the organizational structure. Adding to an existing hierarchical network is modular, so additions to network equipment scale linearly in cost. Advantages & Disadvantages of Network. Comparison between Hierarchical and Flat Organization Structures. Organizations can vary in the way they are organizationally structured. The structure of an organization is very important for achieving maximum productivity, managing individual work needs and reaching of corporate goal and objectives.
A typical organizational chart outlines reporting relationships between employees and their supervisors, as well as functional interaction between.