Hierarchy and Enterprise Resource Planning (ERP)

ITT- 415 as Benchmark - Hierarchy and ERPS
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ITT- 415 as Benchmark - Hierarchy and ERPS
Part 1
A hierarchical structure is an organizational structure that focuses on the chain of command or top-down reporting relationships. In this approach, decisions are made by the top leadership and communicated to the junior staff. Like most organizational structures, hierarchies have advantages and disadvantages. One of the advantages is clarity of reporting structure and authority (Joseph & Gaba, 2020). Organizations with a standard hierarchy have a clear reporting structure than those without because employees know who to report to and where to get information and directives. An effective hierarchical structure has a clearly defined reporting relationship with one direct report responsibility for each employee (Kanter, 2019). This streamlines communication flow as staff provides proposals and response directly to their leaders, who make decisions.
Another primary advantage of this structure is decision-making efficiency. Companies with a standard hierarchy enjoy more formalized defined roles and some division between management and employees (Kanter, 2019). In such systems, decisions tend to be autocratic, allowing leaders to make more timely decisions in emergencies. This structure has no room for questioning the manager’s directives. However, a drawback of a hierarchy system is the centralization of power. When one leader or group of leaders has too much authority, they tend to engage in a dictatorship, making decisions that suit their interests. They may avoid internal feedback while making decisions, leading to organizational disunity (Joseph & Gaba, 2020). At the extreme, a hierarchical structure can encourage corruption if leaders lack a sense of internal oversight of their actions.
Based on the advantages and disadvantages of a hierarchical structure, a hierarchy affects business processes positively and negatively. On the positive side, a hierarchy creates clear lines of communication, which increases business efficiency. An established chain of command improves decision-making and problem-solving within the company (Joseph & Gaba, 2020). It also reduces confusion over who should be responsible for a specific task or decision. This clarity helps create an efficient work environment and improved business processes. On the negative front, a hierarchy can slow decisions because communications, ideas and requests must reach the to...