Hierarchy

Hierarchy
See also
Functional dependence Formalization Adhocracy Organizational dependence Organizational documentation Organizing Success factors of company Levels of management Organization of managerial work

Hierarchy, next to centralization and formalization, is one of the dimensions of the organizational structure. It is defined as the number of levels in the organizational structure, in which the top is the most senior manager responsible for the organization's operations as a whole; on subsequent levels are the lower degrees of management.

It is worth noting that by the term hierarchical level we define each level in the organizational hierarchy, with the exception of the lowest (operational) level, which does not involve performing managerial functions. Levels of hierarchical counts from the top. At the top of the organizational hierarchy is the Managing Director, General Manager or President, on another level - its proxies, and other managers.

Essence of the hierarchy

An important element in the process of determining the hierarchical structure in organization is to establish a so-called. chain of command, i.e. such links, which describes who commands who in organization. That kind of bonds are part of a broader concept, namely the organizational links, i.e. dependency relationship between the elements of the current, necessary for implementation of the objectives of the company. In this context hierarchical bonds are often called as bonds of business, bearing in mind the relationship between subordinates and superiors. The essence of this type of bonds are the superior powers to determine the tasks of subordinates. It is, therefore, about the relationship of organizational and managerial posts in vertical view.

Above concept is closely related to two principles of construction of organizational structures, namely:

• the principle of one-man management
• the principle of determining the reasonable boundaries of supervision.

Examples of Hierarchy

• Military: The military has a hierarchical structure with a clear chain of command. At the top is the Commander-in-Chief (CIC) who is responsible for the overall operations of the military. Below the CIC are the four-star generals who lead the four branches of the military. They are followed by the three-star generals, two-star generals, and ultimately the enlisted soldiers at the bottom of the chain.
• Companies: In a company, the hierarchy typically follows a similar structure to the military. At the top is the CEO, who is responsible for the overall operations. Below the CEO are the board of directors and the senior management team. Then come the middle managers who are responsible for managing the day-to-day operations, followed by the front-line employees.
• Government: The government also has a hierarchical structure, with the president at the top. Below the president are the vice president, cabinet secretaries, and department heads. They are followed by the lower-level government employees, such as the state governors, mayors, and bureaucrats.
• Religious Institutions: Religious institutions also have a hierarchical structure, with the Pope at the top. Below the Pope are the cardinals, bishops, and priests. They are followed by the lower-level members of the clergy, such as deacons, nuns, and lay people.

Advantages of Hierarchy

Hierarchy has several advantages, including:

• Clear chain of command – Hierarchy enables a clear chain of command, which allows tasks to be delegated in a structured manner. This makes it easier for managers to assign tasks and responsibilities to employees in an efficient way.
• Effective decision-making – With a hierarchical structure, decisions are made from the top down, which can reduce the amount of time needed for decision-making. This structure also enables managers to make decisions more quickly and effectively as they have access to more resources and information.
• Improved communication – A hierarchical structure can help to improve communication between different levels of the organization. For example, managers can easily pass on instructions and messages to their subordinates, which can help to ensure that tasks are completed efficiently.
• Established roles and responsibilities – Hierarchy establishes roles and responsibilities for each employee. This makes it easier for managers to assign tasks to the right people and ensure that each employee is held accountable for their actions.

Limitations of Hierarchy

Hierarchy is an important part of organizational structure, but it does have its limitations. These include:

• Poor communication: Having multiple layers of management can lead to information not getting passed up or down the chain of command quickly and efficiently. This can lead to confusion and slow decision making.
• Limited flexibility: A hierarchical structure can be quite rigid and inflexible. This can make it difficult to adjust quickly to changing environment.
• Lack of creativity: With multiple layers of management, it can be difficult to get innovative ideas from lower levels up the chain. This can lead to a lack of creativity and new ideas.
• Lack of motivation: Employees can become frustrated when decisions take a long time to filter through the hierarchy. This can lead to a lack of motivation and the feeling that their efforts are not appreciated.

Other approaches related to Hierarchy

• In addition to Hierarchy, there are several other approaches that are related to the organizational structure:
• Decentralization is the opposite of centralization and is the transfer of decision-making authority from the top of the organization to lower levels within the organization. This approach allows for increased flexibility and creativity, but also increases complexity in the decision-making process.
• Formalization is the process of creating rules, regulations, and policies to ensure consistency in operations across departments, divisions, and the organization as a whole. It also helps to define roles and responsibilities, and can help to create a shared organizational culture.
• Specialization is the process of dividing tasks and activities into smaller, more specialized tasks or roles. This approach helps to increase efficiency by allowing employees to focus on specific tasks and activities, and it can also help to increase the level of expertise in the area.
• Span of control is the number of subordinates that a manager is responsible for overseeing and directing. This approach helps to create a more efficient organizational structure by ensuring that there is a manageable number of direct reports for each manager.

In summary, Hierarchy, Decentralization, Formalization, Specialization, and Span of Control are approaches related to the organizational structure that help to create an efficient and effective organizational system. Each of these approaches has its own advantages and disadvantages, and should be carefully considered when designing an organizational structure.

References

• Mahoney, T. A. (1979). Organizational hierarchy and position worth. Academy of Management journal, 22(4), 726-737.