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Hierarchical organizational structure advantages and disadvantages

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:

  1. Authority and responsibility are clearly defined.
  2. It creates a defined structure for communication.
  3. Employees are very loyal to their department within the organization.
  4. It offers multiple-layer authority within the company.
  5. It establishes a clear picture of authority.
  6. It identifies the place where duplication may exist.
  7. It takes the pressure off the entry-level worker.
  8. Eliminates the issues of indecisiveness.
  9. There are specialist managers and also this hierarchical environment encourages the effective use of specialist managers.

Cons or Disadvantages of hierarchical organizational structure:

  1. Departments can make decisions that benefit them rather than the business as them to the whole.
  2. It can create confusion.
  3. It can create a communication barrier.
  4. Communications across various sections can be poor especially horizontal communication.
  5. The organization can be bureaucratic and respond slowly to changing customer needs and the market within which the organization operated.
  6. It may cause a lack of collaboration.
  7. This structure may reduce internal innovation.
  8. It can cause a manager to become terrestrial.
  9. It may reduce internal innovations.
  10. It centralized the power structure.
  11. It creates a structure of unequal treatment.

Explore more information:

  1. Advantages and Disadvantages of Functional Organizational Structure
  2. Advantages and Disadvantages of Divisional Structure
  3. Advantages and Disadvantages of Matrix Organizational Structure
  4. Advantages and Disadvantages of Product Organizational Structure
  5. Advantages and Disadvantages of Horizontal Organizational Structure

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Divya Chauhan
Divya Chauhan is an expert writer with 10+ years of experience as a content writer. They specialize in making complex topics like IT, Health, and general topic easy to understand. Divya has written over thousands of articles to help people with their content. Prior to joining Way2benefits’s editorial team in 2020, Divya worked as a Professor of BCA college and freelancer blogger.