Advantages and Disadvantages of Hieararchical Organization Chart

ADVANTAGES AND DISADVANTAGES OF HIEARARCHICAL ORGANIZATION CHART
Advantage: Clear Authority Line
Clear authority for work and departments is created by using a hierarchical structure. No one is
confused about the limits between departments and jobs, and the chain of command is understood by
everyone.
Advantage: Clear Communication Lines
The hierarchical framework creates clear communication lines. This strategy provides departments with
a clear spokesperson: the manager. Subordinates know to whom to report and where information and
directives should be obtained.
Advantage: Clear outcomes
It makes sense to organise them by job category when organizing employees according to a hierarchy.
This enables employees to share the resources allocated by managers with similar job tasks and for
managers to coordinate similar efforts to great effect.
Disadvantage: Siloed Thinking and Isolation
The same grouping that enables departmental members to work well together also separates them from
other parts of an organization, reducing interdepartmental collaboration and communication.
Disadvantage: Control Centralization
At the highest levels possible, hierarchical structures centralize power and authority. This can create
some issues for a small business owner. In day-to-day operations, the owner can be caught up, making
decisions about things that are best left in the hands of those closer to the situation.
ADVANTAGES AND DISADVANTAGES OF TEAM BASED CHART
Advantage: Better Communication
The key benefit of a team-based organization is that contact between workers is often more free-
flowing and effective, since there are typically no managers or just one manager supervising several
teams.
Advantage: Teams Address Problems Quicker

This increased connectivity also ensures that organizations can solve job problems quicker because
workers can exchange data at a faster pace, which speeds up reactivity.
Advantage: Workers agile and motivated

Another benefit is that companies focused on teams are more agile than typically organized
organizations. You can transfer workers from one team to another as a company owner to optimize
their abilities and talent and to keep them engaged with fresh challenges as well.
Disadvantage: Conflict potential:

A major drawback of a team-based organization is that the success and group cohesion can be
adversely influenced by interpersonal differences within the team.
Disadvantage: Certain people are not team members.

Another downside is that not all jobs are ideal for teamwork. Some workers work more effectively on
their own and may not optimize their skill set by being part of a community.
Disadvantage: Hide behind the team Under-performing employees
Another downside is that some workers can rely on other staff in a team setting to make up for their
own lack of effort.
ADVANTAGES OF MATRIX ORGANIZATION CHART
1. Collaboration among various departments
Perhaps the greatest benefit of a matrix structure is that it brings together highly qualified team
members from various departments, enabling the organization to draw on the resources it already has
rather than finding talent from outside the organization and hiring project team members.
2. Combines project and functional frameworks for management
In order to improve productivity, adjust to evolving markets and respond more rapidly to market
demand, the matrix structure integrates the project management structure with the functional
management structure.
3. Enables interdepartmental cooperation

The layout of the matrix also facilitates improved inter-departmental coordination and collaboration.
The matrix structure fosters a more open work environment by encouraging various departments to
work together, thereby making the company more diverse.
DISADVANTAGES OF MATRIX ORGANIZATION CHART
1. Managerial functions may not be established clearly
A common drawback of the layout of the matrix may be the uncertainty between managers involved
in projects defined by the matrix. Because within the matrix, the power relations between the
functional manager and the project manager may not be as well defined, uncertainty may arise about
the particular management positions.
2. Positions in teams may not be well defined
Another concern is whether the responsibilities of team members in the project are not clearly
defined or whether the division of duties between the functional roles of employees and project roles
is not consistent.
3. Overload may be triggered by too much work.
The layout of the matrix organization may also often contribute to job pressure on team members, as
their workload on the project is often in addition to their normal functional tasks. Employees may
suffer burnout or neglect or struggle to complete assignments, or due to time constraints, their work
quality may suffer.

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ADVANTAGES AND DISADVANTAGES OF HIEARARCHICAL ORGANIZATION CHART

Advantage: Clear Authority Line

Advantage: Clear Communication Lines

Advantage: Clear outcomes

Disadvantage: Siloed Thinking and Isolation

Disadvantage: Control Centralization

Advantage: Better Communication

Advantage: Teams Address Problems Quicker

Advantage: Workers agile and motivated

Disadvantage: Conflict potential:

Disadvantage: Certain people are not team members.

Disadvantage: Hide behind the team Under-performing employees

ADVANTAGES OF MATRIX ORGANIZATION CHART

1. Collaboration among various departments

2. Combines project and functional frameworks for management

3. Enables interdepartmental cooperation

DISADVANTAGES OF MATRIX ORGANIZATION CHART

1. Managerial functions may not be established clearly

2. Positions in teams may not be well defined

3. Overload may be triggered by too much work.

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