Hierarchy Vs Hierarchy

1607 Words 7 Pages
The major difference between hierarchy and heterarchy is the fact they hierarchy has one single ruler whereas heterarchy has multiple bosses or rulers in the organisation to deal with various matter and sort out problems and take major decisions for the business. The hierarchical organisation is found in majority in the present day and they are bureaucratic in nature contrary to that of heterarchial structure. As stated by Dam and Marcus (2007), the organisations that follow this hierarchical rule are the tall structures and the flow of communication is vertical in nature in these organisations. There are several managerial levels in this form of structure along with clear lines of commands at the same time. The employees need to follow the …show more content…
There are various partners who have equal or a specific proportion on shares invested in the organisation and thus the decisions and the ground rules set by them must be accepted by all of them or the majority of them. This involves major reputed organisations or people joining hands in one organisation and investing in that organisation. They have an equal status when it comes to position in the company and they have the right to call a meeting as when they deem fit and rest of the heads need to be present. This helps the organisation get a balance as none of the leaders hold the topmost positions. They all are in the top positions and each of their votes count. This helps the organisation decision be more diverse and the options for the organisation are diverse at the same time. Most of the eminent law firms have this partnership structure that helps them function smoothly and yield a better …show more content…
However the hierarchical structure is most popular in maximum of the organisation (Sims, 2002). There are several law firms who have partners and they form the heterarchical structure and face no problem in doing it. Nokia is a world famous mobile brand based in Finland and they had a hierarchical business since a long time. They were in a very strong position in the market at the same time. However with the advent of Android and iOS they had been facing quite a lot of competition and their shares had fallen drastically in the market rendering incapable of regaining their previous position in the market. Thus they had to opt for heterarchical position in order to keep their business up and running. They formed a strategic alliance with Microsoft so that they could also touch the smartphone market with their Windows phones. Thus this is when they shifted from a hierarchical structure to a heterarchical structure. They took decision unitedly with Microsoft and developed the softwares and their new set of smartphones. This was a successful attempt, as it did not fail when it was launched in the market. Thus heterarchical structure is successful and helps many organisation regain their position by joining forces and taking decision that benefit both the organisations as well as prove

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