The definition for hierarchy is a simple and easy one. The Australian Oxford Dictionary states that hierarchy is a “system in which grades of status or authority are ranked one above the other” 1. There can be many types of hierarchy being used in companies, but many use the traditional pyramid structure commonly known as “social hierarchy” or “chain of command”.
However this rigid system may be good for some, but many companies are seeing this as being unworkable. The system many use now is whereby people work in smaller teams and then work together to achieve a common purpose and this system is known as creative collaboration. These teams can be small or large in size and usually consists of people having the same or similar disciplines2.
Social hierarchy use of a pyramid structure has an apex at the top of the pyramid with the structure being used by the business community and is also used by churches and the army. At the top of this apex is the most powerful person within an organization and is commonly known as the boss or CEO. The use of this structure is usually questioned by analysis as they consider having power over others doesn’t work and shouldn’t be used as a standard model3.
The level or flow of communication is where the collective power of a company is delegated by a board of directors, and the day to day running is conducted by the managing director or CEO4. Below the CEO, are in some cases known as heads and they provide or give information to a person who is lower than they are, and this information will then go down the line of command until it reaches the bottom person5. As one may realise, this sort of structure is not very ideal for collaboration as one is above another. In my opinion, and the system our team uses, is whereby we are generally all on the same level or tier and this means there is greater teamwork and communication.
By having everyone on the same level, no one is above the next person meaning we are all equal. This type of hierarchy is now being used and goes by the name of a flat organization.
A flat organization is whereby there are no or very few tiers, with management doing little intervening. This type of hierarchy structure states that if all workers are an expert in their chosen field or industry, making it is a lot more democratic, and all employees can be more directly involved in all the decision making, rather than having orders being barked at them or being watched with a fine tooth comb by the many layers of management.
The problem with this system it only works for small organizations or with smaller teams in a large one. If an organization grows, they can keep this structure but it could lead to lower productivity.
This structure promotes greater decision making by all members of the organization and this leads to greater collaboration, as everyone can have their say. This basically means there is a greater need for managers to communication with their employee 6.
As one may realise, one hierarchy style may work for one business but not the other. It all depends on what they feel comfortable using and deciding what style works for them.
References
1.Edited by Bruce Moore, The Australian Pocket Oxford Dictionary – Fourth Edition, 1996, Oxford University Press.
2. http://darmano.typepad.com/logic_emotion/2006/07/human_hierarchy.html, blog entry - Tuesday, July 11, 2006, David Armano viewed on 4th May 2008.
3. http://en.wikipedia.org/wiki/Social_hierarchy viewed on 4th May 2008
4. http://en.wikipedia.org/wiki/Hierarchical_organization viewed on 4th May 2008.
5. http://en.wikipedia.org/wiki/Chain_of_command viewed on 7th May 2008
6. http://en.wikipedia.org/wiki/Flat_organisation viewed on 7th May 2008
Image - http://darmano.typepad.com/logic_emotion/2006/07/human_hierarchy.html
Wednesday, May 7, 2008
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