Hierarchical organization
Encyclopedia
A hierarchical organization is an organizational structure
where every entity in the organization
, except one, is subordinate to a single other entity. This arrangement is a form of a hierarchy
. In an organization, the hierarchy usually consists of a singular/group of power at the top with subsequent levels of power beneath them. This is the dominant mode of organization among large organizations; most corporation
s, government
s, and organized religions are hierarchical organizations with different levels of management
, power or authority
. For example, the broad, top-level overview of the general organization of the Catholic Church
consists of the Pope
, then the Cardinals, then the Archbishop
s, and so on.
Members of hierarchical organizational structures chiefly communicate with their immediate superior and with their immediate subordinates. Structuring organizations in this way is useful partly because it can reduce the communication overhead by limiting information flow; this is also its major limitation.
, where the height of the ranking or person depicts their power status and the width of that level represents how many people or business divisions are at that level relative to the whole—the highest-ranking people are at the apex
, and there are very few of them; the base
may include thousands of people who have no subordinates). These hierarchies are typically depicted with a tree
or triangle
diagram
, creating an organizational chart
or organigram. Those nearest the top have more power than those nearest the bottom, and there being fewer people at the top then at the bottom. As a result, superiors in a hierarchy generally have higher status and command greater rewards than their subordinates.
was the pinnacle of the state
. In many countries, feudalism
and manorialism
provided a formal social structure that established hierarchical links at every level of society, with the monarch at the top.
In modern post-feudal states the nominal top of the hierarchy still remains the head of state
, which may be a president
or a constitutional monarch, although in many modern states the powers of the head of state are delegated among different bodies. Below the head, there is commonly a senate
, parliament
or congress
, which in turn often delegate the day-to-day running of the country to a prime minister
. In many democracies, the people are considered to be the notional top of the hierarchy, over the head of state; in reality, the people's power is restricted to voting in elections.
In business, the business owner traditionally occupied the pinnacle of the organization. In most modern large companies, there is now no longer a single dominant shareholder, and the collective power of the business owners is for most purposes delegated to a board of directors
, which in turn delegates the day-to-day running of the company to a managing director or CEO. Again, although the shareholders of the company are the nominal top of the hierarchy, in reality many companies are run at least in part as personal fiefdoms by their management; corporate governance
rules are an attempt to mitigate this tendency.
.
The iron law of oligarchy
, introduced by Robert Michels
, describes the inevitable tendency of hierarchical organizations to become oligarchic
in their decision making.
Hierarchiology is the term coined by Dr. Laurence J. Peter, originator of the Peter Principle
described in his humorous book of the same name, to refer to the study of hierarchical organizations and the behavior of their members.
The IRG Solution - hierarchical incompetence and how to overcome it
argued that hierarchies were inherently incompetent, and were only able to function due to large amounts of informal lateral communication
fostered by private informal networks.
(1842–1910), Michel Foucault
(1926–1984) and Hayden White
, important critiques of hierarchical epistemology are advanced. James famously asserts in his work "Radical Empiricism" that clear distinctions of type and category are a constant but unwritten goal of scientific reasoning, so that when they are discovered, success is declared. But if aspects of the world are organized differently, involving inherent and intractable ambiguities, then scientific questions are often considered unresolved. A hesitation to declare success upon the discovery of ambiguities leaves heterarchy at an artificial and subjective disadvantage in the scope of human knowledge. This bias is an artifact of an aesthetic or pedagogical preference for hierarchy, and not necessarily an expression of objective observation.
Hierarchies and hierarchical thinking has been criticized by many people, including Susan McClary
and one political philosophy which is vehemently opposed to hierarchical organization: anarchism
is generally opposed to hierarchical organization in any form of human relations. Heterarchy
is the most commonly proposed alternative to hierarchy and this has been combined with responsible autonomy
by Gerard Fairtlough
in his work on Triarchy
theory.
Amidst constant innovation in information and communication technologies, hierarchical authority structures are giving way to greater decision-making latitude for individuals and more flexible definitions of job activities and this new style of work presents a challenge to existing organizational forms, with some research studies contrasting traditional organizational forms against groups that operate as online communities that are characterized by personal motivation and the satisfaction of making one's own decisions.
Organizational structure
An organizational structure consists of activities such as task allocation, coordination and supervision, which are directed towards the achievement of organizational aims. It can also be considered as the viewing glass or perspective through which individuals see their organization and its...
where every entity in the organization
Organization
An organization is a social group which distributes tasks for a collective goal. The word itself is derived from the Greek word organon, itself derived from the better-known word ergon - as we know `organ` - and it means a compartment for a particular job.There are a variety of legal types of...
, except one, is subordinate to a single other entity. This arrangement is a form of a hierarchy
Hierarchy
A hierarchy is an arrangement of items in which the items are represented as being "above," "below," or "at the same level as" one another...
. In an organization, the hierarchy usually consists of a singular/group of power at the top with subsequent levels of power beneath them. This is the dominant mode of organization among large organizations; most corporation
Corporation
A corporation is created under the laws of a state as a separate legal entity that has privileges and liabilities that are distinct from those of its members. There are many different forms of corporations, most of which are used to conduct business. Early corporations were established by charter...
s, government
Government
Government refers to the legislators, administrators, and arbitrators in the administrative bureaucracy who control a state at a given time, and to the system of government by which they are organized...
s, and organized religions are hierarchical organizations with different levels of management
Management
Management in all business and organizational activities is the act of getting people together to accomplish desired goals and objectives using available resources efficiently and effectively...
, power or authority
Authority
The word Authority is derived mainly from the Latin word auctoritas, meaning invention, advice, opinion, influence, or command. In English, the word 'authority' can be used to mean power given by the state or by academic knowledge of an area .-Authority in Philosophy:In...
. For example, the broad, top-level overview of the general organization of the Catholic Church
Catholic Church hierarchy
The term Hierarchy in the Catholic Church has a variety of related usages. Literally, "holy government", the term is employed in different instances. There is a Hierarchy of Truths, which refers to the levels of solemnity of the official teaching of the faith...
consists of the Pope
Pope
The Pope is the Bishop of Rome, a position that makes him the leader of the worldwide Catholic Church . In the Catholic Church, the Pope is regarded as the successor of Saint Peter, the Apostle...
, then the Cardinals, then the Archbishop
Archbishop
An archbishop is a bishop of higher rank, but not of higher sacramental order above that of the three orders of deacon, priest , and bishop...
s, and so on.
Members of hierarchical organizational structures chiefly communicate with their immediate superior and with their immediate subordinates. Structuring organizations in this way is useful partly because it can reduce the communication overhead by limiting information flow; this is also its major limitation.
Visualization
A hierarchy is typically visualized as a pyramidPyramid (geometry)
In geometry, a pyramid is a polyhedron formed by connecting a polygonal base and a point, called the apex. Each base edge and apex form a triangle. It is a conic solid with polygonal base....
, where the height of the ranking or person depicts their power status and the width of that level represents how many people or business divisions are at that level relative to the whole—the highest-ranking people are at the apex
Apex (geometry)
In geometry, an apex is the vertex which is in some sense the highest of the figure to which it belongs.*In an isosceles triangle, the apex is the vertex where the two sides of equal length meet, opposite the unequal third side....
, and there are very few of them; the base
Base (geometry)
In geometry, a base is a side of a plane figure or face of solid, particularly one perpendicular to the direction height is measured or on what is considered to the bottom. This usage can be applied to a triangle, parallelogram, trapezoids, cylinder, pyramid, parallelopiped or frustum. By...
may include thousands of people who have no subordinates). These hierarchies are typically depicted with a tree
Tree structure
A tree structure is a way of representing the hierarchical nature of a structure in a graphical form. It is named a "tree structure" because the classic representation resembles a tree, even though the chart is generally upside down compared to an actual tree, with the "root" at the top and the...
or triangle
Triangle
A triangle is one of the basic shapes of geometry: a polygon with three corners or vertices and three sides or edges which are line segments. A triangle with vertices A, B, and C is denoted ....
diagram
Diagram
A diagram is a two-dimensional geometric symbolic representation of information according to some visualization technique. Sometimes, the technique uses a three-dimensional visualization which is then projected onto the two-dimensional surface...
, creating an organizational chart
Organizational chart
An organizational chart is a diagram that shows the structure of an organization and the relationships and relative ranks of its parts and positions/jobs...
or organigram. Those nearest the top have more power than those nearest the bottom, and there being fewer people at the top then at the bottom. As a result, superiors in a hierarchy generally have higher status and command greater rewards than their subordinates.
Common models
All governments and most companies have similar structures. Traditionally, the monarchMonarch
A monarch is the person who heads a monarchy. This is a form of government in which a state or polity is ruled or controlled by an individual who typically inherits the throne by birth and occasionally rules for life or until abdication...
was the pinnacle of the state
State (polity)
A state is an organized political community, living under a government. States may be sovereign and may enjoy a monopoly on the legal initiation of force and are not dependent on, or subject to any other power or state. Many states are federated states which participate in a federal union...
. In many countries, feudalism
Feudalism
Feudalism was a set of legal and military customs in medieval Europe that flourished between the 9th and 15th centuries, which, broadly defined, was a system for ordering society around relationships derived from the holding of land in exchange for service or labour.Although derived from the...
and manorialism
Manorialism
Manorialism, an essential element of feudal society, was the organizing principle of rural economy that originated in the villa system of the Late Roman Empire, was widely practiced in medieval western and parts of central Europe, and was slowly replaced by the advent of a money-based market...
provided a formal social structure that established hierarchical links at every level of society, with the monarch at the top.
In modern post-feudal states the nominal top of the hierarchy still remains the head of state
Head of State
A head of state is the individual that serves as the chief public representative of a monarchy, republic, federation, commonwealth or other kind of state. His or her role generally includes legitimizing the state and exercising the political powers, functions, and duties granted to the head of...
, which may be a president
President
A president is a leader of an organization, company, trade union, university, or country.Etymologically, a president is one who presides, who sits in leadership...
or a constitutional monarch, although in many modern states the powers of the head of state are delegated among different bodies. Below the head, there is commonly a senate
Senate
A senate is a deliberative assembly, often the upper house or chamber of a legislature or parliament. There have been many such bodies in history, since senate means the assembly of the eldest and wiser members of the society and ruling class...
, parliament
Parliament
A parliament is a legislature, especially in those countries whose system of government is based on the Westminster system modeled after that of the United Kingdom. The name is derived from the French , the action of parler : a parlement is a discussion. The term came to mean a meeting at which...
or congress
Congress
A congress is a formal meeting of the representatives of different nations, constituent states, independent organizations , or groups....
, which in turn often delegate the day-to-day running of the country to a prime minister
Prime minister
A prime minister is the most senior minister of cabinet in the executive branch of government in a parliamentary system. In many systems, the prime minister selects and may dismiss other members of the cabinet, and allocates posts to members within the government. In most systems, the prime...
. In many democracies, the people are considered to be the notional top of the hierarchy, over the head of state; in reality, the people's power is restricted to voting in elections.
In business, the business owner traditionally occupied the pinnacle of the organization. In most modern large companies, there is now no longer a single dominant shareholder, and the collective power of the business owners is for most purposes delegated to a board of directors
Board of directors
A board of directors is a body of elected or appointed members who jointly oversee the activities of a company or organization. Other names include board of governors, board of managers, board of regents, board of trustees, and board of visitors...
, which in turn delegates the day-to-day running of the company to a managing director or CEO. Again, although the shareholders of the company are the nominal top of the hierarchy, in reality many companies are run at least in part as personal fiefdoms by their management; corporate governance
Corporate governance
Corporate governance is a number of processes, customs, policies, laws, and institutions which have impact on the way a company is controlled...
rules are an attempt to mitigate this tendency.
Studies of hierarchical organizations
The organizational development theorist Elliott Jacques identified a special role for hierarchy in his concept of requisite organizationRequisite organization
Requisite organization is a concept in organization development developed by Elliott Jaques.Requisite organization is a unified whole system model for effective managerial leadership...
.
The iron law of oligarchy
Iron law of oligarchy
The iron law of oligarchy is a political theory, first developed by the German syndicalist sociologist Robert Michels in his 1911 book, Political Parties. It states that all forms of organization, regardless of how democratic they may be at the start, will eventually and inevitably develop into...
, introduced by Robert Michels
Robert Michels
Robert Michels was a German sociologist who wrote on the political behavior of intellectual elites and contributed to elite theory...
, describes the inevitable tendency of hierarchical organizations to become oligarchic
Oligarchy
Oligarchy is a form of power structure in which power effectively rests with an elite class distinguished by royalty, wealth, family ties, commercial, and/or military legitimacy...
in their decision making.
Hierarchiology is the term coined by Dr. Laurence J. Peter, originator of the Peter Principle
Peter Principle
The Peter Principle states that "in a hierarchy every employee tends to rise to his level of incompetence", meaning that employees tend to be promoted until they reach a position at which they cannot work competently. It was formulated by Dr. Laurence J...
described in his humorous book of the same name, to refer to the study of hierarchical organizations and the behavior of their members.
The IRG Solution - hierarchical incompetence and how to overcome it
The IRG Solution - hierarchical incompetence and how to overcome it
The IRG Solution is a book written by David Andrews and published in 1984.-Synopsis:The book, written in 1984, developed from a number of research papers at the Open University Energy Research Group, and an article appearing in the Guardian Newspaper which attempted an information- and...
argued that hierarchies were inherently incompetent, and were only able to function due to large amounts of informal lateral communication
Lateral communication
-Organizational communication:In organizations and organisms, lateral communication works in contrast to traditional top-down, bottom-up or hierarchic communication and involves the spreading of messages from individuals across the base of a pyramid....
fostered by private informal networks.
Criticism and alternatives
In the work of diverse theorists such as William JamesWilliam James
William James was a pioneering American psychologist and philosopher who was trained as a physician. He wrote influential books on the young science of psychology, educational psychology, psychology of religious experience and mysticism, and on the philosophy of pragmatism...
(1842–1910), Michel Foucault
Michel Foucault
Michel Foucault , born Paul-Michel Foucault , was a French philosopher, social theorist and historian of ideas...
(1926–1984) and Hayden White
Hayden White
Hayden White is a historian in the tradition of literary criticism, perhaps most famous for his work Metahistory: The Historical Imagination in Nineteenth-Century Europe...
, important critiques of hierarchical epistemology are advanced. James famously asserts in his work "Radical Empiricism" that clear distinctions of type and category are a constant but unwritten goal of scientific reasoning, so that when they are discovered, success is declared. But if aspects of the world are organized differently, involving inherent and intractable ambiguities, then scientific questions are often considered unresolved. A hesitation to declare success upon the discovery of ambiguities leaves heterarchy at an artificial and subjective disadvantage in the scope of human knowledge. This bias is an artifact of an aesthetic or pedagogical preference for hierarchy, and not necessarily an expression of objective observation.
Hierarchies and hierarchical thinking has been criticized by many people, including Susan McClary
Susan McClary
Susan McClary is a musicologist associated with the "New Musicology". Noted for her work combining musicology and a feminist music criticism, McClary is Professor of Musicology at Case Western Reserve University.-Biography:...
and one political philosophy which is vehemently opposed to hierarchical organization: anarchism
Anarchism
Anarchism is generally defined as the political philosophy which holds the state to be undesirable, unnecessary, and harmful, or alternatively as opposing authority in the conduct of human relations...
is generally opposed to hierarchical organization in any form of human relations. Heterarchy
Heterarchy
A heterarchy is a system of organization replete with overlap, multiplicity, mixed ascendancy, and/or divergent-but-coexistent patterns of relation...
is the most commonly proposed alternative to hierarchy and this has been combined with responsible autonomy
Responsible autonomy
In the study of organizations and how they work, it is often suggested that there are only three ways of "getting things done": hierarchy, heterarchy and responsible autonomy...
by Gerard Fairtlough
Gerard Fairtlough
Gerard Fairtlough CBE was an English author, speaker and management thinker.Born on Hayling Island, Hampshire, Fairtlough trained initially as a biochemist at Cambridge University...
in his work on Triarchy
Triarchy
Triarchy refers to the three fundamental ways of getting things done in organizations: hierarchy, heterarchy and responsible autonomy.All organizations use a mixture of these three ways, but the proportions can differ widely. At present, hierarchy is usually considered essential for all...
theory.
Amidst constant innovation in information and communication technologies, hierarchical authority structures are giving way to greater decision-making latitude for individuals and more flexible definitions of job activities and this new style of work presents a challenge to existing organizational forms, with some research studies contrasting traditional organizational forms against groups that operate as online communities that are characterized by personal motivation and the satisfaction of making one's own decisions.
See also
- AuthoritarianismAuthoritarianismAuthoritarianism is a form of social organization characterized by submission to authority. It is usually opposed to individualism and democracy...
- Command hierarchyCommand hierarchyA command hierarchy is a group of people committed to carrying out orders "from the top", that is, of authority. It is part of a power structure: usually seen as the most vulnerable and also the most powerful part of it.-Sociology:...
- Flat organizationFlat organizationFlat organization refers to an organizational structure with few or no levels of intervening management between staff and managers...
- Matrix managementMatrix managementMatrix management is a type of organizational management in which people with similar skills are pooled for work assignments. For example, all engineers may be in one engineering department and report to an engineering manager, but these same engineers may be assigned to different projects and...
- Hierarchical incompetenceHierarchical incompetenceHierarchical incompetence is the often observed inability of organisations to achieve the aims set for them. This can be due to the over-simplification of issues and the loss of tacit knowledge about issues as they ascend a hierarchical organization.There is often an inbuilt tendency for people up...
- The Nature of the FirmThe Nature of the FirmThe Nature of the Firm 4 Economica 386–405, is an influential article by Ronald Coase. It offered an economic explanation of why individuals choose to form partnerships, companies and other business entities rather than trading bilaterally through contracts on a market.-Summary:Given that...
- Reverse hierarchyReverse hierarchyA reverse hierarchy is a conceptual organizational structure that attempts to "invert" the classical pyramid of hierarchical organisations. The concept was pioneered by the total quality management movement....
- Corporate governanceCorporate governanceCorporate governance is a number of processes, customs, policies, laws, and institutions which have impact on the way a company is controlled...
- Social hierarchy
- AnarchismAnarchismAnarchism is generally defined as the political philosophy which holds the state to be undesirable, unnecessary, and harmful, or alternatively as opposing authority in the conduct of human relations...