In an organizational structure, “chain of command” refers to a company's hierarchy of reporting relationships – from the bottom to the top of an organization, who must answer to whom. The chain of command not only establishes accountability, it lays out a company’s lines of authority and decision-making power. A proper chain of command ensures that every task, job position and department has one person assuming responsibility for performance. Show
Command Chain FormationThe command chain doesn't happen accidentally. Organizational designers lay it out as the last step in creating an organizational structure. Planners first consider a company’s goals since organizational structure must support strategy. Designers next determine the tasks needed to reach the goals. Departmentalization follows as designers decide how to group the tasks. Grouping affects resource sharing and the ease with which people communicate and coordinate work. After departmentalizing, designers assign authority for tasks and areas. Once authority is assigned, planners can finally lay out the relationships between positions, thereby creating a chain of command. Reporting Relationships and Organizational ChartThe reporting relationships established in the final step of organizational design are easy to see on an organizational chart, which depicts a company’s structure. 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. Span of ControlA manager may be linked to many or few subordinates. The number of people reporting to a manager is called a manager’s span of control. Managers with wide spans of control have many subordinates, and it’s not possible for a manager to closely examine activity. 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. Flat Organizational StructuresWhen 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. These are characteristics found in organic organizational structures. In organic structures, the chain of command’s importance is de-emphasized, since power is distributed among employees. The chain may only consist of employees and the owner or employees to a manager to the CEO, making for a very short chain of command. Lacking bureaucracy, flat organizations can readily mobilize to meet market conditions. Vertical Organizational StructuresManagers closely supervising subordinates can only manage a few. These managers have narrow spans of control. Narrow spans require more managers to make sure all employees are properly supervised. These managers must also be managed closely, given their involvement in details and decision-making. This results in tall organizations with several layers of middle management. The chain of command is important and is used to exert control from the top. Many rules govern activities. Such structures are rigid and mechanistic, leaving little room for innovation and creativity. Omar ElHawary Omar ElHawarySupport Engineer at MemberPressPublished Nov 13, 2019
Others also viewedExplore topicsWhat refers to line of command that flows from top level to lower level?In line organization, authority flows from the top to the bottom. It is also known as the chain of command or scalar principle.
What is the lower level of management?Lower-level management refers to the managers that supervise, coordinate, and delegate tasks directly to employees in their department. These are the entry-level managers of the organization, which may also be referred to as first-line managers.
What is command level in management?Establishing a Chain of Command
A company's hierarchy starts with the CEO at the top. Following the CEO are the vice president and upper management employees who report directly to the CEO. Then, there are department managers and supervisors who report to the higher-level executives.
What is the top level of management?Top Level Management
The top level of an organization's management consists of the Board of Directors, Managing Director, Chairman, Chief Executive Officer, Chief Operating Officer, Vice-President, President, General Manager, and other Senior Executives.
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