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Hierarchy is necessary in traditional organizations like railways, steel mills mines where people with diverse professions work ( among which many are out door and some hazardous like working in an underground mine, working in blast furnace , working in track maintenance(there is a chance of being hit by a train)also in ,military , the police and general administration. Here everyone’s profession is well defined. And every man is experienced in his professional field.
Here the responsibilities are clearly marked down and communication is one sided. That is from top to bottom. And that is necessary as otherwise there would be anarchy. Any communication from the bottom to the top gets filtered by the hierarchy.
In the ITES /IT/Bpo/marketing industry hierarchy is less strict. It is because work here is dynamic and changing. And most of the employees have a similar professional back ground.Everyone has to be multiskilled. As the profession changes according to the client. Today you work for a bank, tomorrow you may work for a mobile co, internet service provider or a computer co while working in the same IT company like WIPRO ,INFOSYS,CONVERGYS,ACCENTURE . Here manager may not have a cabin with a closed door but a cubicle. And he may take some time off to meet with employees EVERY DAY. Here employees are appreciated or even financially credited for making corrective changes in the production process.