Importance of hierarchy
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Hierarchy ensures accountability
An effective hierarchy makes leaders accountable for results, and provisions for their replacing failures with someone new — sometimes through internal promotion. That's how hierarchy ultimately serve the success of the organisation as whole — including owners, managers, and employees.
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Importantly, the organization of social group into a hierarchy serves an adaptive function that benefits the group as a whole. When essential resources are limited, individual skills vary, and reproductive fitness determines survival, hierarchies are an efficient way to divide goods and labour among group members.
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