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1 IntroductionEvery organizational functions and activities need to be organized and coordinated They should be designed properly to manage the effective division of work grouping of activities coordinating and controlling the work of the organization Organizational structure determines the work allocation and grouping of activities according to the needs and goals There is two main structures adopted in modern organisation they are hierarchy and heterarchy In this essay I have compared these two organisational structures and clarify my understanding with some examples First I will define each structures and then compare them with three main characteristics they are Communication Decision making Conflict and Leadership At the end I will explain why I choose heterarchical structure and draw out key learnings2 Definition21 Defining Hierarchical organization structureHierarchical structure has a long history in organizational theory It has been the dominant model of organizational structure for the past two centuries Fairtlough 2005 This organizational structure was easily seen in the early 19th century and originally intended to fix the arbitrary and occasionally cruel management practices of the early 1800s Conrad Poole 2005 In their article Authors also given examples about how some US big firms successfully pursuing hierarchical structure back in 1920s such as General Motors and DuPontThere are many concepts and definitions about hierarchical structure Typically hierarchy can be defined as a rank ordering people along one or more socially important dimensions Gruenfeld Tiendens 2010In other word group of people can be ranked by their status which is the respect and admiration they enjoy in the eye of group their leadership or the degree to which they use influence to reach common goals and their power which ability to influence others Van Vugt 2006 22 Defining Heterarchical organization structureIn the extreme changing organization the hierarchical structure Heterarchical organizations shared-power structures are emerging as business models in current literature on organizational theory Stephenson 2009 Within a heterarchy interdependence and collaboration is
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