Pitfalls of a hierarchical organization
If organizations need evidence that it is time for them to create a new approach to
organizing and managing their businesses, they need only look around them to see how the business environment has changed and how many previously successful organizations are failing. One of the key areas is how do we all colloboate and function or interconnect from pitfalls of a top down hierarchical organization .
Many companies today employ the functional organization structure, meaning that employees, managed through clear lines of authority, ultimately report to one person. This arrangement is a form of a hierarchy. In an organization, the hierarchy usually consists of a singular/group of power at the top with subsequent levels of power beneath them. This is the dominant mode of organization among large organizations; most corporations, governments, and organized religions are hierarchical organizations with different levels of management, power or authority
A hierarchical organization is an organizational structure where every entity in the organization, except one, is subordinate to a single other entity. Hierarchy is a form of organizational structure in which each unit has one and only one "parent" unit, except the "top" unit, which has none.
The vertical functional model uses a hierarchical structure with a strong concept of subordination; it encompasses management span of control, reporting relationships and a centralized management staff that holds the position of power
see diagram below how each managers is only reporting to top boss without any interconnection between them or own subordinates
Bureaucratic Organizations are based on:
Top-down approach w/many levels of management
Hierarchical career paths within one function
Functional Division of Labor
Work Specialization
Employees working independently
Problems that come with such organization
Poor communiation: Employees who work under a vertical functional structure tend to exhibit poor communication skills; team members most often talk among themselves, within their job function. Communicating with employees outside of their team proves difficult. Coordination and timely communication suffer in a vertical functional organization. In larger organizations this structure creates boundaries between departments that present a challenge for disseminating information to multiple areas.
Alignment – is an issue people always raise as too much interference in areas of influence between top management which trickles down . Many companies spend huge amounts of effort trying to get to complete alignment- but they could not align perfectly.Organizations that implement a vertical functional structure often become distracted from pursuing financial goals. Departments develop a narrow view of the organization, mistaking their singular goals as more important than the organization's goals.
Not Connected and not effective –They work geographic “silos” and do not encourage more cooperation across the business. Unfortunately everyone is involved in everything and no one can make a decision or get things done. Too many people involved in decision and meetings and nobody able to get things done. Smart companies are beginning to be more selective about where they connect
Daily dilemmas –Such organzation causes daily dilemmas; divided loyalties between multiple bosses, a pressure for both central control and local autonomy. The practical resolution of these dilemmas is carried out in the middle of the organization – not at the top. These “matrixed middle” managers need the information, skills and empowerment to enable them to succeed but senior managers, who became successful in simper times, sometimes inhibit this by not delegating sufficient autonomy.
Escalation - a lack of capability or confidence in people (often caused by size or remoteness) tends to lead to higher levels of escalation in such organization structures – this can lead to delay, cost and dissatisfaction – the only way to break out of this potentially vicious circle is by building capability and trust.
Too much power to a few non accountable senior managers at the top, which can lead to corruption. For this reason, most corporations have a board which has the authority to supervise, hire, and fire top executives, as well as setting and overseeing certain policy. The board exists outside of the hierarchy, and in theory is supposed to behave more democratically.
Overspecialization and disconnection among units in the hierarchy that are not directly related. For example, many organizations take hierarchy to mean that they should not interact with people other than their supervisor and those they supervise--this leads to bad communication, duplication of work, and general inefficiency. Most organizations pair hierarchy with other structures, so that a clear chain of command is preserved, but people are also encouraged to look at the organization as a whole and are given guidelines of how they can interact with other parts of the organization.
organizing and managing their businesses, they need only look around them to see how the business environment has changed and how many previously successful organizations are failing. One of the key areas is how do we all colloboate and function or interconnect from pitfalls of a top down hierarchical organization .
Many companies today employ the functional organization structure, meaning that employees, managed through clear lines of authority, ultimately report to one person. This arrangement is a form of a hierarchy. In an organization, the hierarchy usually consists of a singular/group of power at the top with subsequent levels of power beneath them. This is the dominant mode of organization among large organizations; most corporations, governments, and organized religions are hierarchical organizations with different levels of management, power or authority
A hierarchical organization is an organizational structure where every entity in the organization, except one, is subordinate to a single other entity. Hierarchy is a form of organizational structure in which each unit has one and only one "parent" unit, except the "top" unit, which has none.
The vertical functional model uses a hierarchical structure with a strong concept of subordination; it encompasses management span of control, reporting relationships and a centralized management staff that holds the position of power
see diagram below how each managers is only reporting to top boss without any interconnection between them or own subordinates
Bureaucratic Organizations are based on:
Top-down approach w/many levels of management
Hierarchical career paths within one function
Functional Division of Labor
Work Specialization
Employees working independently
Problems that come with such organization
Poor communiation: Employees who work under a vertical functional structure tend to exhibit poor communication skills; team members most often talk among themselves, within their job function. Communicating with employees outside of their team proves difficult. Coordination and timely communication suffer in a vertical functional organization. In larger organizations this structure creates boundaries between departments that present a challenge for disseminating information to multiple areas.
Alignment – is an issue people always raise as too much interference in areas of influence between top management which trickles down . Many companies spend huge amounts of effort trying to get to complete alignment- but they could not align perfectly.Organizations that implement a vertical functional structure often become distracted from pursuing financial goals. Departments develop a narrow view of the organization, mistaking their singular goals as more important than the organization's goals.
Not Connected and not effective –They work geographic “silos” and do not encourage more cooperation across the business. Unfortunately everyone is involved in everything and no one can make a decision or get things done. Too many people involved in decision and meetings and nobody able to get things done. Smart companies are beginning to be more selective about where they connect
Daily dilemmas –Such organzation causes daily dilemmas; divided loyalties between multiple bosses, a pressure for both central control and local autonomy. The practical resolution of these dilemmas is carried out in the middle of the organization – not at the top. These “matrixed middle” managers need the information, skills and empowerment to enable them to succeed but senior managers, who became successful in simper times, sometimes inhibit this by not delegating sufficient autonomy.
Escalation - a lack of capability or confidence in people (often caused by size or remoteness) tends to lead to higher levels of escalation in such organization structures – this can lead to delay, cost and dissatisfaction – the only way to break out of this potentially vicious circle is by building capability and trust.
Too much power to a few non accountable senior managers at the top, which can lead to corruption. For this reason, most corporations have a board which has the authority to supervise, hire, and fire top executives, as well as setting and overseeing certain policy. The board exists outside of the hierarchy, and in theory is supposed to behave more democratically.
Overspecialization and disconnection among units in the hierarchy that are not directly related. For example, many organizations take hierarchy to mean that they should not interact with people other than their supervisor and those they supervise--this leads to bad communication, duplication of work, and general inefficiency. Most organizations pair hierarchy with other structures, so that a clear chain of command is preserved, but people are also encouraged to look at the organization as a whole and are given guidelines of how they can interact with other parts of the organization.
