One issue when organizing around hierarchical functions is that it can create a rigid structure that limits communication, adaptability, and innovation. In such structures, decision-making power is centralized at the top, and lower-level employees may not have the resources or authority to address problems or suggest solutions. This can lead to resentment and frustration among employees who feel that their voices are not being heard or that they are not contributing to their full potential. Additionally, a hierarchical structure can inhibit cross-functional collaboration and teamwork, as employees may be more concerned with climbing the organizational ladder and pleasing their superiors than with working effectively with their peers. To address these issues, organizations may need to adopt more flexible and collaborative approaches to management and decision-making, such as matrix structures or self-managed teams.
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