When every company starts to grow, they need more workforce to keep up with growing business. However, each one cannot be working at the same task at the same level. This is when a business hierarchy falls into existence. Every company has a set of levels they hire for and the distribution of tasks and salaries depends upon their job profile and designation.
This is necessary for a smooth and hassle-free running of the company business. A well defined and tangible work structure is an essential part of every company’s success. If this is not polished or looked after it will prove dangerous when many employees are working under the same roof.
A hierarchical distribution of tasks and power is quite important. Moreover, this also leads to fewer arguments due to the job position of employees. A Human Resource employee cannot argue about the strategies of a marketing team whereas he/she can be aware of the hiring of employees.
- 1 Why is hierarchy important?
- 2 The Basic Business Hierarchy Distribution
- 3 How are the business hierarchy levels distributed?
- 4 What are the designations is a hierarchy?
Why is hierarchy important?
Without a doubt, all fresher’s and recruits of every industry raise this specific question. Each company while evolving requires a set of rules and authority distribution. Furthermore, client approval is extremely necessary. If each person does everything it will be very difficult to approach clients and bag their projects.
Thus, a well maintained hierarchical business model is preferred in the market than a company which do not have their distribution proper.
The Basic Business Hierarchy Distribution
They attain the overall control of the working of the company. They usually decide the direction in which each project has to be led and also the most important things about the company.
Mid-level officers look after the working of each task following the company norms, rules and regulations. They are the medium between the senior and junior level employees or officers.
First level Managers/ Employees
Control and execution of day-to-day tasks. However, each department has first-level employees and they look after each many tasks assigned to certain sectors.
How are the business hierarchy levels distributed?
Undoubtedly, all of the job profiles are designated and distributed according to capability, availability and the experience tenure of the potential candidate. The structure is like a pyramid according to command and authority.
Most employees cater and work at a lower level of companies whereas it starts narrowing as it moves upwards and further to the senior level.
This is how most of the companies work and is the most successful hierarchy distribution.
What are the designations is a hierarchy?
The discussions of stakes and some other main issues take place in the board. The board also has a hierarchy.
The main decisions are taken by the Chairman of the Board.
The decisions can be opposed or approved by the Vice Chairman of the Board.
Furthermore, the stakeholders usually known as the board members can analyze and then agree or disagree with the decisions.
This is the basic business hierarchy of every board group of a company.
Now let’s know more about the different level managers and designation-wise hierarchy followed by most of the companies worldwide.
Chief Executive Officer (CEO)
This position is held by the owner who has established the company or someone the owner has hired for this position. He / She is the main person of an entity like a company or a nonprofit organization.
Chief Operating Officer COO
The COO is the second command in the chain and mostly directly reports to the CEO. Furthermore, he/she takes care of the administrative and operational business of every company.
Then there are chief officers of every department. Their approval and sign is necessary to take the project further to the COO or the CEO.
Moreover, there are a few officers that cater to specific departments of the company. For example,
CFO -Chief Financial Officer
CTO -Chief Technology Officer
CSO -Chief Security Officer
CSO -Chief Strategy Officer
CMO -Chief Marketing Officer
There are many such officers in every established company.
The designation of a President has also an important opinion in every project or client that takes place in the company.
There are a few middle-level designations under the president, for example.
Senior Vice President
Executive Vice President
Assistant Vice President
Associate Vice president
They all report to the senior official according to their post. Whereas, in the end, the President approves and remodels all the work.
A director leads a group of managers and then reports to the specific president. He/ She also has to look towards the each department also has the where the project task has been lead by the managers and the team leaders. All the companies have these posts following the director.
They are equally important for any company to ensure smooth and efficient running.
Every project or task has a manager and they are extremely important because they check the executed work at the most basic level.
There is specific division of teas according to the tasks. Each task has a leader to examine and observe. This leader further reports to the manager of the project or task.
This consists of employees, interns, contract / seasonal employees, temporary or even part-time employees.
This was the hierarchy of a business company. Mostly all the companies have this distribution. I hope you gained knowledgeable insight into this topic and has given you cleared all your queries and doubts. Make the best out of this information and all the best for the future!