hierarchical organization
Definition:
An organization in which power and responsibility are clearly specified and allocated to individuals according to their standing or position in the hierarchy. Military formations are the classic example of such organizations where decisions are made by the leader and passed down through the levels of the hierarchy for implementation in conformity with a strict chain of command. Such organizations were defined as 'mechanistic' by Burns and Stalker. While suited to routine and clearly specifies tasks they leave little room for flexibility or initiative. Given the increasing importance of interaction and service in business relationships it is unsurprising that few business firms adopt this form of organization. More 'organic' structures with fewer levels of management and more flexible structures are widely preferred.
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© Westburn Publishers Ltd 2002, The Westburn Dictionary of Marketing edited by Michael J Baker, ISBN 978-0-946433-01-8. www.themarketingdictionary.com. Entry: [Michael J. Baker],.