Essay about Hierarchy and Business Efficiency

Submitted By Shakirah-Hajiismael
Words: 688
Pages: 3

Shakirah Hajiismael
2.2.A Case Study

1. Define
a) Hierarchical structure

Hierarchy in business often refers to an organize system structure based on ranked authority or skills. For examply, the level of the hierarchy structure is based on ranking so, a CEO of a company would be at the top of the structure while the other employees would be at the bottom as can be seen for the director of ASS which current status on the structure is too high.

b) Productivity

Productivity is the measures of the level of product, work, or profit efficiency of the business which is seen that ASS raise their labor productivity to see efficient profits.

2. The current hierarchical organizational structure of ASS can contribute to lower levels of labor productivity before it show that the structure of rankings (hierarchical structure) shows the the decreasing rate of labor productivity compared to others. Another reason can be that since the hierarchical system has many levels which means they must not have much control of their employees. Another reason can be the expansive cost in the labor area in ASS. Also because of the many levels and rankings in ASS hierarchical structure systems can also lead to miscommunications between the employees or loss in communication which can lead to employees at the lower levels of the system to work not as well.

3.
a) AAS Staff Removing one or more levels in a hierarchical structure is referred to delayering. By delayering AAS organization can cause many in positive and negative ways. If AAS staff were to delayer from five to two level of hierarchy the span of control would be wife which would allow employees to have more opportunities to take responsibilities of the jobs that has been removed from delayering and will also develop more professional careers. Also, will allow staff on the higher level to interact more with staff on the lower levels which will create a bond between employees and the feel will feel more valued and included. However, the negative ways that this can effect the AAS staff is that, staff who are high can be demoted and this can have a huge impact on the others because it can cause motivations to lower and the staff to not have the loyalty bond with their bosses and tensions between new bosses and what not.

b) Business efficiency Delayering can also have an impact on the business’s efficiency. By delayering can cause tention and anxiety between the workers, it can also impact the staff’s motivation and increase insecurities of being aware of increases demotions and lay offs which means the business efficiency can decrease in motivation or