Business Briefing: Why Hierarchies Thrive

Keywords: Hierarchy, Organizational Structure, Management, Authority, Organizational Behavior
Source: Harvard Business Review
Link: Read the full article on HBR.org
Author: Harold J. Leavitt
Published: March 2003
Est. Read Time (Original): ~30 minutes

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The Core Idea

Harold J. Leavitt offers a powerful reality check against the popular management rhetoric that hierarchies are obsolete. He argues that despite their well-documented flaws, cruelty, stupidity, and fostering authoritarianism, hierarchies persist because they are not just organizational constructs, but phenomena that fulfill deep and enduring human needs. They provide order and security, give us a sense of identity ("a flag to fly"), and, most practically, they remain the most effective mechanism we have for getting big, complex jobs done.

Why It Matters for Business Today

In an age that celebrates flat, agile, and egalitarian structures, Leavitt's defense of hierarchy is a crucial and grounding perspective for any leader in a large organization.

• A Reality Check on "Flat" Organizations: The article serves as a powerful reminder that even modern, "networked" or "federalized" organizations are still fundamentally hierarchical. Subordinates still report to superiors. The basic blueprint remains because it is uniquely effective at processing complexity and providing clarity.

• Acknowledging the Psychological Benefits: Leavitt moves beyond a purely functional defense of hierarchy. He argues that hierarchies thrive because they provide crucial "psychic nourishment": a sense of place, clear markers of progress, and a source of personal identity, which are powerful motivators.

• The Inescapable Problem of Authority: The article's most practical lesson is that "authority clings to the manager's role as skin clings to the body." A leader cannot simply wish away the power dynamics of their position. Effective leadership in a hierarchy requires a sophisticated ability to be both engaging and authoritative, a constant calibration to the realities of power.

The Strategic Question for Leaders

Leavitt argues that hierarchies inevitably foster "authoritarianism and its destructive offspring: distrust, dishonesty, territoriality, toadying, and fear." Accepting that hierarchy is here to stay, what specific, counterintuitive mechanisms (like Intel's "failure of the month" dinner) do you use to actively combat these toxic byproducts and make it safe for people to speak the truth to power?

Share your perspective in the comments below.

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