Explain the advantage and disadvantage of using hierarchical directory structure
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Answer:
Advantages of a Hierarchical Structure
Employees recognize defined levels of leadership within the organization; authority and levels of responsibility are obvious.
Opportunities for promotion motivate employees to perform well.
Hierarchical structures promote developing employees as specialists. Employees may narrow their field of focus and become experts in specific functions.
Employees become loyal to their departments and look out for the best interest of their area.
Disadvantages of a Hierarchical Structure
Communication across different departments tends to be less effective than in flat organizations.
Rivalry between departments may inflame as each department makes decisions that benefit its own interests rather than the organization's as a whole.
Increased bureaucracy often hinders an organization's speed to change. Increased time may be required to respond to clients.
Salaries for multiple layers of management increase an organization's costs.