Why is it not usually possible to organize a large organization in a single hierarchy?
Give some examples of standard conflicts of interest between departments with different objectives.
Are there any other ways of organizing companies that might solve these problems?
It is undeniable that enterprises are impossible to be organized in a single hierarchy. One of the limits in this system may be standard conflicts of interest between departments with other objectives. However, there are a variety of ways which assist companies in tackling these problems.
Initially, organizing a large company in a single hierarchy is able to with numerous problems. This is because no organization design or system of management is perfect. Traditionally, organizations have a pyramidal structure, which establishes clear authority for work and departments. In contrast, this method is a complicated chain of command which can slow down decision-making, as well as create delays in communicating vertically through the management levels and horizontally between teams. Additionally, due to having only a line manager – a far distance between the top and the bottom, hierarchy organization can cause unequal treatment. Therefore, because of the main reasons, most companies have other structures for alternative measures such as: functional structure or matrix management in order to mitigate the complication existing in a single hierarchy.
On the contrary, the other management methods also face to various problems. One of these may be conflicts of interest between offices with their objectives. First of all, a conflict of interest in business normally refers to a situation in which an individual's personal interests conflict with the professional interests owed to their employer or the company in which they are invested. Self dealing can be considered as the most common type of conflicts, which occurs when a management-level professional accepts a transaction from another organization that benefits the manager and harms the company or the company's clients. Moreover, another common kind of conflicts in business may be gift issuance. It happens when there is a gap between the rewards of high promotions and those of the other career levels in each enterprise. Thus, they are two main symbols of standard conflicts of interest between departments.
Furthermore, in order to overcome process management problems, a manager or director should work closely with his or her employees. During the process, he or she is capable of understanding their needs and taking steps to implement processes which allow them to work efficiently as well as simply. Additionally, to restrict standard conflicts, employers had better have an in-depth understanding of their staff’s qualities or interests. Not only that, but they also pay more attention to teamwork, which can contribute to increase the relationship between colleagues to achieve a common goal.
In conclusion, it is prevalent that a single hierarchy cannot helps corporations organize work and department. However, when using other structure, they should focus on employees’ needs and interests to decrease inequalities and conflicts between departments.
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