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