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Organizational Structure

Submitted by cokicoki on April 3, 2008

Category: Business

Words: 413 | Pages: 2

Views: 83

Popularity Rank: 76,732

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Hierarchical Structure

Advantages:

• Decision making starts at the top but can be passed down the lower levels.

• Often the vertical division are separated according to function

• Roles of staff are clear and well defined

• Clear for staff to understand how they can “move up the ladder” to be promoted

• Clear chain of command

Disadvantages:

• One way communication (top to bottom)

• Lack of coordination between department and division

• Tunnel vision problem

• Inflexible and may lead to change resistance