Leadership is a combination of strategy and character that should help the people in unlocking their potential and working towards the realization of the common vision of the company. Whatever be the type of leadership involved, the ultimate goal should be to keep the entire organisation motivated in achieving the overall strategic goal.
In a hierarchical leadership, the organisational structure is more like a pyramid, in which the employees at lower levels work under the guidance and direction of superiors and managers at higher levels. Here the power belongs not to the individuals, but to the positions in the hierarchy, thus insuring that power is not concentrated in an individual. Roles and power structures are clearly defined and managers assign work to the subordinates as per their skill sets. Employees have the opportunities of growth in their departments and this keeps them motivated for success.
However, flow of communication is from top to bottom and most decisions are made by the managers at the top levels. This may lead to decrease in employee satisfaction at times. Decision making may be slower as responsibility and authority is concentrated in top levels, which might reduce the ability of dynamic decision making which is needed in dealing with competitive threats. So, in order to survive the swiftly changing environment, the management must work harder to ensure that such delays are tackled with effective decisions.
Non-hierarchical leadership, on the other hand, is organic or flat, with fewer layers which report to a single individual. This decentralisation of power invests more responsibility in the employees i.e. they are more accountable for the consequences of their work. The approach is task oriented. This encourages creativity at work and more productive outcomes as well. Resource and information sharing happens conveniently amongst the employees. Employee satisfaction is ensured in
References: Maxwell, John C. (1993). Developing the leader within you. Reference from http://HYPERLINK "http://www.debian.org/"www.debian.org Wager, L.Wesley. Leadership Style, Hierarchical Influence, and Supervisory Role Obligations.