Hierarchies 1.4.3

Hierarchy - employees are ranked in layers, one above each other. Each has fewer employees than the one below, in a typical pyramid shape.

• Layers of hierarchy reflect levels of seniority.
• In the past, tall hierarchies suited businesses that wanted to supervise employees very closely, fitting neatly with an autocratic leadership styles.
• Responsibilities are clearly defined and there are opportunities for promotion.
• More layers mean more managers can specialise... but interdepartmental rivalry may reduce efficiency.
• Flat organisations suit businesses that want to encourage flexibility in the workforce.
• Some employees who are given more responsibility become more motivated
• Communication may be easier, faster and more effective
• In a flatter organisation, decision making may be quicker and clearer and reaction to market change may be faster.