T or FThe organizational hierarchy is flatter in a multidivisional structure than in a product or functional structure.

Hierarchy is a level or level associated with a position or defined as a system for dividing levels of positions in an organization. The hierarchy is divided into two, namely structural and functional. Meanwhile, in terms of its function, the hierarchy functions as; supervision, control, and accountability.

Hierarchy is really needed in an organization as Max Weber said that the ideal organization has a hierarchy. According to Max Weber, the characteristics of an ideal bureaucracy are as follows: Work strictly on rules. Tasks that are of a special nature. Rigid and simple, restrictions by position, large and small powers due to hierarchy, different functions of each hierarchy, job description (job responsibilities), selection of officials, has the right to receive salary and decide, development based on career and merit, not using resources in personal interests, the hierarchy of positions is in supervision and control.

The components of organizational hierarchy

1. Division of work, concerning the level of work specialization. Managers divide all organizational tasks into specific jobs which are composed of special activities;

2. Delegation of authority refers specifically to decision-making authority, not doing work;

3. The division of departments (division of department) can be grouped into division of departments based on their functions (functional departmentalization), based on region (geographic departmentalization), based on product (product departmentalization), based on customers (customer departmentalization); and

4. Span Control (Chain of command) is the number of subordinates who report to the superior. This range is a factor that influences the form and complexity of the organizational structure.

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