Chain of command how does it work

This flat organizational structure, Hernandez says, is more informal in nature and operates more as an employee-developed system that can encourage communication and collaboration between different teams. You will typically see flat structures in tech companies, especially those that started out as very small companies. One high-profile example is Tesla, whose CEO Elon Musk once said that anyone in the company "can and should email [or] talk to anyone else according to what they think is the fastest way to solve a problem.

While that can be seen as a noble effort, Hernandez warns that a flat structure has some disadvantages as well. People can get too comfortable with one another, resulting in a more informal and disorganized company culture. Key takeaway: Whether you choose a vertical or flat chain of command, pick the structure that is best suited to your company's size and culture. What is the importance of establishing a chain of command?

Andrew Martins. Knowing your business's managerial structure is important for maintaining order. Establishing a structural hierarchy within your business can establish expectations at every level. A clearly defined chain of command helps employees understand whom they should seek help from in certain situations. A breakdown in the chain of command can cause significant strife within your workforce.

This article is for a small business owner or human resources professional determining why their organization should have a clearly defined chain of command and how such a structure should be set up. What is a chain of command in business?

How do you establish a chain of command? Generally, corporate chains of command include the following levels of management: Top-level managers Commonly referred to as senior management, this tier comprises roles like chief executive officer, chief financial officer and chief operating officer.

Midlevel managers Employees in this tier report to the company's top-level managers. Front-line managers Front-line managers often fill customer-facing positions. More efficient communication Knowing who can address questions or concerns is helpful for employees. Clear accountability Mistakes happen. Decisions are made up the chain If you've ever heard someone say they have to "run it up the flagpole" or "that's above my pay grade," they're referencing their chain of command and saying that the question or issue at hand should be discussed by that individual's boss or manager.

Eliminated or decreased disorganization Chaos breeds problems in the workplace. Chain of command challenges The following are a few challenges a company may face when establishing and maintaining a chain of command. Outdated form of communication According to Millennial Procurement , the chain of command system was developed in an age where information was less widely available than it is now and the methods of communication were limited.

A chain of command is an organizational structure that documents how each member of a company reports to one another. At the top of the chart would be the founder, owner or CEO, and the people who report to them would appear directly below. This pattern continues until every person or level of employment at the organization is accounted for. This hierarchy changes over time as employees join and leave. A chain of command exists to distribute power and responsibilities, keep employees aware of company news and create a system for sharing knowledge.

It also ensures each employee is responsible for their own work but also has a more senior leader to offer support, encouragement and motivation. The chain of command is a very traditional way of structuring a company's authority levels.

It's common to see the same chain of command structure at various organizations, from customer-based businesses to government entities.

A business owner or CEO holds the position at the top of a chain of command because they hold the top position at the company. The next level down usually includes senior executives or individuals who are in vice president roles over a part of the organization. These individuals report directly to the owner or CEO. Under the upper management level, you may find individual managers or supervisors who are responsible for an entire department or group of employees. These employees would appear under the middle-management level and at the bottom of the chain of command to represent that their authority figure is their direct supervisor.

It's also common to find several ways to break down the hierarchy even further, depending on how large a company is, how many departments it has and more. There may be more management levels or fewer, depending on business needs. The important thing to remember is that the farther at the bottom of the hierarchy your position is, the less authority you may have.

Those at the top of the hierarchy possess more control over organizational developments and are in the position to make important decisions. They also carry more accountability and responsibility for the company's success and all the individuals who fall under them in the chain of command. While there is a traditional structure to a chain of command, you may find the language used in a company's hierarchy to differ from one business to another.

Some companies use traditional terms like "superior" and "subordinate" to describe members of a company's hierarchy, while others use "team members," "employees" or actual job titles. Read more: How to Become a Manager. As with most things at a company, there are certain advantages and disadvantages to having a chain in command in place. Wikipedia, the free encyclopedia. Gregg Learning. Chain of Command [Video].

Hasemyer, D. NBC News. Heathfield, S. Understanding the chain of command in your workplace. The Balance Careers. Huebsch, R. Business etiquette and the chain of command. Small Business — Chron. Jervis, Lori. Nursing inquiry. Johnson, S. Chain of command in organizational structure. Tanguay, D. Chain of command principle — organization, manager, model, company, hierarchy, current status.

Chain of Command. Theory, meet practice TDL is an applied research consultancy. Key Terms Span of control: The number of people reporting to a specific manager.

History The idea of the chain of command can be traced back to the Industrial Revolution, when growing workplace environments had less information and communication options available to them, and thus required a more streamlined method of communication. Consequences Nowadays, in an age rich with information and communication options, the chain of command looks different than it did originally. Controversies Chains of command come under scrutiny when there is little room for movement within them.

Case Studies Healthcare and working conditions Lori Jervis at the University of Oklahoma conducted a study in about power relations among nursing staff in an old-age home. Politics and world issues The President is at the top of the chain of command in America.

Once authority is assigned, planners can finally lay out the relationships between positions, thereby creating a chain of command.

Starting at the bottom, each position is connected to one above it by a line. Following the line vertically from position to position reveals the chain of command. Each person is one link in the chain. A manager may be linked to many or few subordinates. Consequently, employees under such managers have more authority to perform their jobs and even make decisions than do employees reporting to managers with narrow spans of control. When a manager has a wide span of control, the organizational chart takes on a horizontal, flattened appearance.

Fewer managers are needed in middle management, so the company has less of a power hierarchy.