Hierarchical dependence

Each company must be organized. The main problems of development of hierarchical dependencies is choosing between unity of management and use of broad span of control.

Rules of shaping hierarchical dependencies

The first rule of development is unity of management. It says that a subordinate should receive the commands and orders from one superior.

Critics, however, believe that such a strict vertical hierarchical subordination is not conducive to the effectiveness of the operation.

Matrix organizational structures does not follow this rule, although without forgetting about it.

The second rule is the principle of proper span of control, each person exercising managerial functions should have proper amount of subordinates that he can effectively guide.

However, it is difficult to specify the maximum number of people that should be supervised by one manager.Some assume that possible span of control should depend on number of contacts, supervised by a specific manager.

Later with the idea of limiting the number of direct reports, there was a recommendation of flattening organizational structure. In addition, more attention was paid to analyzing of factors influencing effective span of control.

Determination of an appropriate span of control takes into account a number of factors:

• qualification of manager and subordinates as well as degree of autonomy of workers.
• organization of company, required scope of cooperation between the various cells and internal organization of the cell,
• quality and efficiency of communication systems and the geographical deployment of personnel.

Examples of Hierarchical dependence

• A traditional hierarchical structure of an organization has a clear chain of command with each employee reporting to one supervisor only. This type of structure is common in large, established companies. For example, a manufacturer with a traditional hierarchical structure would have a CEO at the top, followed by department managers, supervisors, and then employees.
• A functional organization structure is also hierarchical and is often used in companies that provide professional services. It's organized by specialty areas, such as marketing, finance, legal, and operations. This type of structure is common in large companies with multiple departments and functions. For example, a law firm with a functional structure would have the CEO at the top, followed by the heads of the departments and the directors or managers in those departments, and then the employees.
• A matrix organizational structure is a hybrid of the traditional hierarchical structure and the functional structure. This type of structure is often used in companies that have multiple product lines or brands and need to be able to quickly respond to changes in the market. In a matrix structure, employees report to both their functional manager and their project manager. For example, a company with a matrix structure might have a CEO at the top, followed by department heads and project managers, and then employees.

Advantages of Hierarchical dependence

Hierarchical dependence is a type of organizational structure that establishes authority and responsibility among staff members. It has several advantages, including:

• A clear chain of command, which leads to greater accountability and clarity in decision-making processes. It also allows for more efficient communication and clear delegation of tasks.
• It can foster a better understanding of roles and tasks, making it easier to manage workloads.
• It allows for better coordination of resources and better monitoring of progress.
• It allows for faster decision-making, as decisions can be made quickly and efficiently at lower levels in the hierarchy.
• It also allows for greater control over personnel, as employees are more likely to adhere to pre-defined roles and responsibilities.

Limitations of Hierarchical dependence

Hierarchical dependence has certain limitations that can affect the organization’s development. These include:

• Lack of flexibility: A hierarchical system creates a rigid structure that can limit an organization's ability to quickly respond to changes in the external environment.
• Poor communication: Hierarchical systems have an "up-down" communication channel, which can lead to information not being shared between departments.
• Narrow focus: Hierarchical systems focus on individual tasks rather than the organization as a whole. This can lead to inefficient use of resources.
• Limited creativity: A hierarchical system can limit the creativity of employees, as they are limited to only the tasks assigned to them by their supervisor.
• Poor motivation: A hierarchical system can lead to employees feeling undervalued and can lead to a lack of motivation.

Other approaches related to Hierarchical dependence

Introduction: Apart from the hierarchical dependency, there are other approaches to organization that managers can explore.

• Matrix management approach: This approach allows organizations to reorganize how work is done and who does it. It involves restructuring teams to bring together employees with different skills to work together on a project.
• Project-based organization: In this system, teams are created to handle specific projects, and team members are assigned roles and responsibilities. It allows organizations to focus on specific tasks and objectives, while also allowing them to draw on the specific skills and expertise of individual team members.
• Network-based organization: This approach focuses on making sure all parts of the organization are connected and can collaborate effectively. It involves creating strong links between departments and teams and creating systems to effectively share information and resources.
• Task-based organization: This approach focuses on tasks and activities that need to be done, rather than on the structure of the organization. It allows teams to be created to take on specific tasks and projects, and allows for flexibility in how tasks are assigned.

Summary: Other approaches to organization include matrix management, project-based organization, network-based organization, and task-based organization. Each approach has its own strengths and weaknesses, and can be used to create a more efficient and effective organization.

Hierarchical dependence — recommended articles

Characteristics of bureaucracy — Bureaucratic organization — Linear structure — Organizational chart — Organizational systems — Organizational dependence — Tall organization — Grouping of posts — Radial structure

References

• Olchi, W. G. (1978). The transmission of control through organizational hierarchy. Academy of Management Journal, 21(2), 173-192.