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What is the disadvantage of a heirarchical organisation? |
What is the disadvantage of a heirarchical organisation? There is no disadvantage, the biggest hierarchical organization that exist is the army. They can react fast to a short notice. They`re efficient and organized. Companies need a hierarchical structure but must avoid to make it too heavy and slow to move. results in lack of motivation in employees, you know what happens then. Delay in Communication can be a problem. However, if clear job descriptions and roles for every person/designation are clearly defined, there are lesser chances of conflicts. It would depend on the Management how they plan and get the work executed and how they can utilize the skills and talents of their employees in the right direction. Many times, wrong people land up in wrong jobs. The working culture of MNC and a start-up organization or Small & Medium Enterprise in different cities will vary and influence the performance of the employees. If some employees who are used to working in MNC, take up a job in SME will take time to adjust or may not like working there as work habits are entirely different. In BPO the culture is informal and whereas in other organizations, it can be very formal and restrictive. It would depend on the work culture set by the management. Every organization structure has stregths and weaknesses. The primary weaknesses of a heirarchical structure include: 1) Slow decision making process and consequently loss of agility (unsuitable for FMCGs) 2) More often than not, heirarchical organizations discourage risk taking, leading to loss of creativity (unsuitable for research organizations) 3) Genrally speaking, heriarchical organizations (often found in mature cash cows) can be looked upon as excess "fat" that can be leaned out through propoer value stream mapping. |
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