Hierarchical Organization

Hierarchical Organization refers to an organization in which every entity (other than the head of organization) reports to a higher entity.

Arguments in favor of Arguments opposing
Every entity reports to a single higher entity.
Hierarchical structure in an organization ensures that a single entity is responsible for the management of each reporting entity. Hierarchical structure limits the reporting line to a single entity which may lack qualification for full power over the reporting entity.
The power is alloted according to the level in the hierarchy.
Hierarchical structure can function as a stablizing force in assigning roles and responsibilities to various levels. The rank and level within an hierarchical organization may dominate objective merits.

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