Side effects of Bad Hierarchy System in Organisation

Sample Picture of Organisational Hierarchy chart

Hierarchy is like a Navigation for an Organisation to provide a clear path for achieving its goals.

A wrong Structure leads to a decline in the graph in terms of productivity and Profitability & the right one will make your reach the Customer's heart.

What is Hierarchy for an organization?

In simple terms, we can define the hierarchy as a representation of the relationship between Employees and their Reporters to achieve their Individual and Organisational Goals with the common Motive of

"Maintaining Strong Customer Relationship & Profitability".

Escalation of working for Individuals & Groups have been defined as per the diagram mentioned above.

Bad Vs Good Hierarchy System?

Now the question arises, How will we identify the Bad Hierarchy and Good Hierarchy Structure?

Key Indicators of Good & Bad Hierarchy is mentioned in the above table of content.

Let's talk about the Good indicators 👍

👉The clarity in Job Role-

When Employees know their duties and Responsibilities and to reach out to the Next Level they Exactly perform to get promotion & an increment accordingly is the sign of Good Hierarchy system in an organization. Once the Employees have clarity of their "To-Do List" it helps to increase productivity as an Individual which leads to simply the growth of the company.On the contrary if there is no such clarity, it simply wastes the company's Resources and Profits.

for Example: If multiple Employees are Responsible for a single Assignment due to multiple directions received from various supervisors what Positive result has come out just Imagine. This happens due to the overlap of command by the management or departmental authorities or when importance is given to their interest rather than the company's values.

👉Strong and Strategic Planning-

Most Importantly indicator of a good hierarchy System can be seen in the Planning of Short terms and long terms Goals. An Organisation where strong Hierarchy exits, have Strong "CTA Plan-Call to Action Plan". Strong and Good Hierarchy System plans for the future that creates opportunities, rather than simply waiting for new opportunities.

Strategic Planning relies on strong Objectives for creating growth in the market such as

📢 Introducing New Product/Service

🔎 Analysis of Suitable Distribution channel

📊 Expansion of the Target Market

for achieving these objectives, Strategies requires the input from Structure support of organization such as:

Company's Marketing Experts
Accounting wing
Information & Digital wing
Production wing
Sales Team
Operation & Execution wing

Let's talk about the Bad indicators 👎

Well, Bad indicators of Poor Organisational Hierarchy are reflected by the following outcomes:

👉Imbalance in Work Load-

A Poor or Bad Hierarchy System leads to an unequal or an Imbalance work distribution among departments.

for Example:- Few Employees are doing nonstop work without taking any break, on the other hand, some others have no work to perform. This happens just because of the poor distribution of work among departments and their Employees. This creates a burden on a few Employees and mental dissatisfaction as well.

👉Poor Communication-

When the Structure of the organization is inappropriate, then the situation will be dangerous in terms of communication. The employee will not be aware of the facts that where they have to speak up or share their work or report.

This will directly affect your customers, clients, or other future partners which will end up creating a Hazardous situation for your organization. & It's a not good sign for the company.