Hierarchy at workplaceZeinab zein 201400080

Ahmad Alyoussef 201401296

Mohamad Ali Ahmad 201402147

Hierarchy is a system or organization in which people or groups are ranked one above the other according to status or authority.

Hierarchy at the Workplace

Hierarchy is the arrangement of a particular set of (ranks or levels) i.e. multiple hierarchies are possible per (dimension or system).

Traditional vs. Flexible Hierarchies

Traditional corporate hierarchy: members are organized in a pyramid of levels of authority. One leader is at the very top, while many workers are at the base level. Each worker has a clearly defined role and level of authority and responsibility. Workers can only move between roles through promotion or demotion.

Flatter hierarchical structures: Levels of middle management are reduced or removed, so that all staff below executive levels have the same level of authority.

Flexibility is preferred by companies with skilled staff.

Hierarchy might be considered somewhat old-fashioned. Many companies today favor a more flexible or ‘flat’ approach. To break with tradition, they might:

Foster leadership capability at lower levels.

Invite input into the company’s strategy from employee and manager level.

Identify influential staff and use them to bring about ‘change from within’.

This type helps: Companies to become increasingly digital and social.

Employees at a lower level can be able to communicate to a global audience at the stroke of a key.

Employees to gain unprecedented power to influence opinion — power that would normally be reserved for the upper tiers of a company.

The flat organizational structure can work anywhere. This works best when

The environment is changing rapidly: Firms organized around small, autonomous teams are much more effective than large hierarchies.

Your main point of differentiation is innovation: Firms organized with a flat structure tend to be much more innovative – if this is important strategically, then you should be flat.

The organization has a shared purpose: While the objectives may differ, all of the firms discussed here have a strong central purpose.

There are four main levels of hierarchy

commonly found within businesses

1. Directors such as the Chairman, Executive Director and non-Executive Director:

They lead strategic business activities and have ultimate financial responsibility

towards all stakeholders.

2. Corporate Officers: include the Chief Executive Officer (CEO), Chief Financial

Officer (CFO), Chief Information Officer (CIO) and others. They have specific areas

of expertise and responsibility.

3. Managers: responsible for day-to-day running of specific areas of the business.

Some organizations have more managerial levels than others.

4. Employees: the largest group, carrying out essential functions as directed by

managers.

Why is structure important?

A carefully designed structure can help a company

work more effectively.

Each of its staff has a clear line of responsibility.

Employees can focus on the task at hand rather than

stock market performance.

Directors are free to concentrate on stakeholders

interests over individual customers.

Communicating about your hierarchy

To work effectively, your company’s structure should be clear and understood by all employees.

Organizational charts are commonly used for this purpose.

They visually explain the levels of responsibility within the company, with labels giving the name and job title of each employee.

Your organizational chart should be easily accessible by all staff, and updated regularly (or whenever somebody leaves or joins the company).

Importance of Hierarchy at Workplace

Hierarchy provides effective organization:

1. Hierarchy positions a few skilled leaders at the top of the

organization, directing its strategy and operations.

2. Work is more effective when many people team up to reach a single

goal, rather than having many people setting goals with few people to carry them out.

Hierarchy creates authority and unity:

1. Authority ensures that everyone under a manager’s command will work towards the organization's goals.

2. Without hierarchical authority, teams are much less likely to unite to achieve a common goal.

Hierarchy maps out career paths

It provide employees with opportunities for development and promotion, which in turn can drive motivation to perform well and increase job satisfaction.

Mobility between hierarchical levels also benefits the organization in lots of ways. For example, When managers prove ineffective, hierarchies also need to be able to promote replacements from junior levels.

Hierarchy ensures accountability

1. An effective hierarchy makes leaders accountable for results, and provisions for their replacing failures with someone new, sometimes through internal promotion.

2. Hierarchy ultimately serve the success of the organization as whole, including owners, managers, and employees.