Businesses have been moving away from traditional hierarchically based companies in favor of structures using a team approach or networks of outside suppliers, yet the hierarchical structure is the one most used by small businesses. Hierarchical structures have both advantages and disadvantages; some of those depend on context.

In a hierarchical organizational structure, your business has vertical levels leading to a top authority figure. Your employees are given clearly defined roles and leaders. Although a hierarchical structure has some disadvantages, the structure comes with several advantages that make it worth considering for a small company with several employees...

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