Strategic Management in Hierarchy Organizations

The hierarchical organization has been in existence since the 29th century and is still being relied upon to date. The reason being, it is easier to coordinate and direct actions of all employees within an organization, Colman (2014). Coordination of individual can be done effectively over several miles. geographic locations are not a limitation. In Miguel’s et al. European Management Journal, (2011), hierarchy is often used as a structure to achieve deployment and success in the strategy. In the essay, there will include evaluation criteria by means of auditing. It will majorly explore management issues of hierarchical systems.
In several areas where many people are involved in accomplishing a specific task, people find a way of coordinating what they are doing in their parts in order to mutually achieve optimum goals. There are various hierarchy theories under strategy management that bring out the most out of activities done. Among the most common theories that explain coordination are the cognitive hierarchy theory, social projection theory and the theory of team explanation. Schelling (1960) showed how decisions made by humans are undeniably hinged on coordinative actions and expectations of other people’s actions.
A brief explanation of the hierarchical theories explains how the theories are related to the organization system and how they may be used to influence actions taken for better strategy execution. The cognitive hierarchy theory was proposed first in the years 1945 and 1946. This theory was built to make individuals who have varying reasoning levels to coordinate and move at a higher regulated pace. Team reasoning, on the other hand, is a theory that utilizes the motivation of individuals working on a goal. In the circumstances where individuals are motivated, there is a maximized standard effort that raises each individual’s expectations. In such collaboration, decision making is collectively preferable and usually the theory of team reasoning and others that involve people working toward a specific goal, Kotter, (2011).