Hierarchy is an organizational form that groups items in a specific way, either above or below one another. It can also refer to items that are on the same level as one another. Hierarchy is a powerful force that can be used for good or for bad purposes. The use of hierarchies in business is widespread.
Hierarchy is an organizational form
Organizations use hierarchy to determine roles and responsibilities. Hierarchies can be physical, biological, or ecological. The physical hierarchy begins with the smallest structural units, the neutron, proton, and electrons. These are then combined to form molecules and complex compounds. Organisms and organelles are then formed to form a cellular structure. The biological hierarchy follows this same structure, starting with the cell. From there, they form an organ system and finally, an entire organism. In ecology, a single organism becomes a species, a population, and a biosphere.
Among the many benefits of a hierarchical structure is that it provides opportunities for growth within the organization. People in a hierarchical organization have a clear career path, and reporting relationships are defined clearly. Additionally, companies with hierarchical organizational structures are typically more compartmentalized, with more niche positions than those in flat organizations.
Hierarchies are sometimes represented by a pyramid. The height of the pyramid represents power status, while the width represents the number of people at a given level. At the apex of the pyramid, there are the highest-ranking individuals. Meanwhile, the base of the pyramid may include thousands of people without subordinates.
A hierarchical organization structure can be beneficial for small organizations, but it can also be unproductive for large organisations. Ultimately, the choice will depend on the size of the business, the type of employees, and the nature of the work. Generally, a flat organisational structure is more appropriate for small businesses, which don’t need many managers. For example, a small business could consist of a single owner and employees who report to the owner.
When a company has a hierarchy, managers and supervisors will have to work together to make decisions. The result is a slower decision process, especially when it comes to urgent business decisions. In a hierarchical company, the hiring process may involve several supervisors, which may result in a slow hiring process. The structure can limit input throughout the organization.
Today, many people don’t want to work in a traditional hierarchy. The advent of new technology has made it possible for companies to run more efficiently than ever before, and a slow hierarchy may not be what a company needs to remain competitive. Instead, today’s high-speed, information-based, and collaborative business models require a different organizational form to remain competitive.
Organizations can divide their employees into teams and departments based on their expertise and role. This creates team spirit and loyalty, which is beneficial for retention. Besides, it helps employees identify their line of responsibility. A clear chain of command also helps in attracting and retaining talented people. And it can also improve communication.
It can be a force for good
While many argue that hierarchy can promote social harmony, there are also a number of disadvantages to it. The first is that it wastes resources. To maintain a hierarchical organization requires a tremendous amount of energy. Most of this energy goes to the elites who use it to fund their extravagant lifestyles. This is not good for the Earth or humanity.
The second disadvantage of hierarchy is that it limits freedom and creativity. It also tends to increase the risk of social conflict and rivalry. A lack of freedom to voice one’s opinion can prevent an organization from becoming creative. People tend to shy away from speaking their mind in a hierarchical environment.
On the other hand, there are advantages to hierarchy. Historically, it has been a necessary social structure. Human civilizations had to evolve in hierarchical societies to meet the energy demands of their societies. Eliminating hierarchy would undermine the basis of their civilization. However, today, society is less healthy compared to earlier times.
Another advantage of hierarchy is that it restricts interactions between people to their direct superiors and subordinates. This allows human groups to expand beyond the Dunbar number. For example, when hunter-gatherer societies evolved, egalitarian groups were stuck in small bands. Big hierarchical armies eventually won over their egalitarian counterparts, and hierarchy spread.
Some people are naturally predisposed to be under the wing of authority. This may stem from our evolutionary background and childhood experiences. Regardless, each individual hierarchy has its own rationale. For example, a hunter-gatherer society may have valued speed, endurance, and strength. However, in modern societies, there are many disagreements about what is needed to lead. Nevertheless, hierarchy persists as a rationalization for authority and power.
Another reason to have a hierarchy is to promote accountability. Accountability is essential to a successful business, and a hierarchy helps establish structure and clear directions. It also informs employees of the company’s protocols and requirements. It also holds floor managers accountable for their performance. It requires them to report to a higher authority, which assesses their performance based on those results.
As the hierarchy grows, new ranks are added. The number of ranks increases by a logarithmic rate. At the beginning, this leads to rapid concentration of power. By the end, the amount of power in a hierarchy decreases. In this way, it can be a force for good or a force for evil.
