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.|