Chain of Command in Organizational Structure



Chain of command in an organizational structure refers to the hierarchy of reporting relationships in a company starting from bottom to top of an organization. This defines the structure for who must answer to whom and this not only establishes accountability but also lays out the lines of authority of a company and its decision-making power. A proper chain of command makes sure that task, job position and department have got an individual who takes up the responsibility for performance.
Organizational planners consider the goals of the company first as the structure must support its strategy. Designers then determine the tasks that are required to reach those goals. Then takes place departmentalization, followed by assigning of authority for tasks and areas. Once authority is given, relationships between positions can be determined, thereby creating a chain of command.

The number of people who are responsible for reporting to a manager is termed as a manager’s span of control. Those managers who have a wide span of control will have many subordinates and those employees would be having more authority to perform their jobs and make decisions.

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