NTU Undergraduates' research April 2014 - Biosciences | Page 126

How does management hierarchy affect the success of a business
Abstract
Hierarchy will always create an impact on how a business is run and how successful it will be.
Different hierarchical models create controversy between positive and negative impacts of
hierarchy structures. These diverse opinions must be overcome for any business to succeed.
This study assesses the impacts that management hierarchy has on a business, presenting
an overview of different models and structures. These impacts are assessed using four main
case studies: John Lewis, Woolworths, Sports Direct and JJB Sports. Selected as businesses
that are (or were) in the same line of retail and both successful or unsuccessful on a large
scale.
Analysis of management hierarchy structures of these four businesses, demonstrates the
impacts that different structures may have on a business. The data presented shows trends
that hierarchy within management of a business has an overall positive impact on the
success of a business when effective delegation and communication measures are achieved.
Further research would need to be carried out to identify other factors of a business’
success as well as factors that can negatively impact it. In conclusion, this research should
only be used to assist further research proposals for reasons for a business’ success and
hierarchical management structures, not as a primary reason for failure or success of a
business.

Keywords: Hierarchy, Impacts, Structures, Delegation

By Jennifer Foster