Some of the advantages and disadvantages of a Hierarchical organizational structure are as follows. Also, you can check out the advantages and disadvantages of organizational structure to know more about it.
Pros or Advantages of hierarchical organizational structure:
- Authority and responsibility are clearly defined.
- It creates a defined structure for communication.
- Employees are very loyal to their department within the organization.
- It offers multiple-layer authority within the company.
- It establishes a clear picture of authority.
- It identifies the place where duplication may exist.
- It takes the pressure off the entry-level worker.
- Eliminates the issues of indecisiveness.
- There are specialist managers and also this hierarchical environment encourages the effective use of specialist managers.
Cons or Disadvantages of hierarchical organizational structure:
- Departments can make decisions that benefit them rather than the business as them to the whole.
- It can create confusion.
- It can create a communication barrier.
- Communications across various sections can be poor especially horizontal communication.
- The organization can be bureaucratic and respond slowly to changing customer needs and the market within which the organization operated.
- It may cause a lack of collaboration.
- This structure may reduce internal innovation.
- It can cause a manager to become terrestrial.
- It may reduce internal innovations.
- It centralized the power structure.
- It creates a structure of unequal treatment.
Explore more information:
- Advantages and Disadvantages of Functional Organizational Structure
- Advantages and Disadvantages of Divisional Structure
- Advantages and Disadvantages of Matrix Organizational Structure
- Advantages and Disadvantages of Product Organizational Structure
- Advantages and Disadvantages of Horizontal Organizational Structure