Why is hierarchy important in a business organization?

[King Belieal]

Many business organizations have hierarchies that show the structure of the business organization. What is the use of hierarchy to the sole purpose of profit making for a business organisation?

Can a business organization operate without hierarchical structures?

 

[Springtime]

I think hierarchical structure helps the company to organize employees at different levels. Each level of employee has specific authority and responsibilities. That may help the company to run more smoothly.

 

[eLdavis]

For a business to grow properly there needs to be structure, this is where hierarchy comes into play.

 

[Kross]

I think hierarchy in a business organization helps to establish a chain of command in the business, so that each level knows their roles.

 

[Kera]

Hierarchy helps to establish order in the way a business organization carries out it's processes and decision making.

 

[Min George]

Hierarchy is important in a business because it ensures proper checks and balances in leadership of the organization.