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Hierarchical Structure (Adv & Disadvantage).
Accountability:
Within the hierarchical organizational structure, there is always someone who is held responsible for the actions or decisions that are made.
There is no hiding from this accountability, even if one manager attempts to assign blame to someone else. There is clear communication about who is in charge of what projects.
This design also makes it easier to keep track of ongoing activities, the status of projects, and the quality of work that is being completed.
Reduction in internal innovation:
Reporting structures within a hierarchical organizational structure help a company be able to keep information moving.
It also creates a rigid structure which may limit innovation. If an employee approaches their direct manager with an idea, which is rejected , then it discourages the employee from sharing further.
If that idea would have been accepted at a higher level in the organization, it could impact future revenues. That is why a bypass of the structure for sharing ideas is essential to the success of this traditional structure.
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