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The division according to the hierarchic criterion combines cultural and structural problems with issues of organisational power. This classification is sometimes used in analyses of bureaucratic or power-oriented organisational cultures, for example in the public sector¹⁰¹. Another area of research includes the attempts to build systemic relationships between a hierarchic culture and organisational strategy and structure¹⁰², as well as organisational learning¹⁰³.

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The favouring of hierarchisation is linked with a belief that people differ, and an organisation reflects this diversity. Thus, organisations should include a number of management levels, and there should be a significant diversification of rights, privileges and benefits among different groups of employees. Special significance should be attached to maintaining discipline and strengthening the authority of power. Hierarchic organisations are dominated by the acceptance of a strong diversity of employees. They clearly prefer elitist thinking, and emphasise the significance of the discipline and order created by the power structure.

The striving for equality is a consequence of the belief that people deserve similar rights, and that an organisation is a reflection of such fundamental equality. Thus, organisations should have a flat structure and limit the number of management levels as much as possible – broad diversification of employees’ rights, privileges and benefits is unwelcome. Equality gives rise to the following attitudes in organisations: emphasising similarities between employees, favouring egalitarian thinking, orientation towards spontaneity, and the flexibility of structures and power relationships.

Tab. 10: Hierarchic vs. egalitarian cultures. Source: Own work.

Features	Hierarchic culture	Egalitarian culture
Inequalities between positions	Striving for the consolidation of inequalities between different positions in an enterprise.	Striving for the levelling of differences between different positions.
Wage differential	Accepting large differences between the wages for different positions.	Striving for the limitation of differences in wages.
Management style	Autocratic	Participatory
Level of centralisation of decisions	Centralisation of decisions	Decentralisation of decisions
The source of organisational hierarchy	Natural and objective; a belief that employees occupying lower positions in an organisation usually have fewer skills than employees on higher levels.	Social, conventional; hierarchy is related to different roles, determined for pragmatic purposes.
Stability of the power hierarchy	Hierarchy should be stable.	Hierarchy should be flexible and undergo changes.
Relationships between employees	Subordinates are dependent on their superiors.	Superiors and subordinates are interdependent.
Privileged position of employees on higher levels	Employees at higher levels of the organisation should have privileges.	Everyone in the organisation should have equal rights.
Concept for exercising power	The dominant concepts emphasise the significance of the superiors and the process of managing employees.	The dominant concepts emphasise the significance of employees and their involvement and participation in the managerial process.

The dimension of hierarchy vs. equality is primal with regard to the dimension defined as authoritarianism vs. democracy (participation). Authoritarianism means striving for a one-person, unquestioned decision-making process in an organisation, while democracy means striving for a group (fully participatory) decision-making process. The dimension of hierarchy vs. equality is also primal in relation to the dimension of power centralisation¹⁰⁴.