- Chain of Command in Organizational Structure -

INTRODUCTION
In any human organization, people or groups of people are classified from bottom to top or from top to bottom
thus revealing those who decide and the others, that is to say the subordinates according to their status, their
part of authority or another trait. It is the harmonization of their efforts, which makes the organization or the
system work properly. In our case, this organizational structure is a business. As such, in any business, the
“chain of command” also called “organizational chart”, “pecking order” or “hierarchy” refers to a company’s
stratification of reporting relationships. It describes the way in which organizations, including the military,
religious institutions, corporations, government entities, and universities, structure traditionally their reporting
relationships. Reporting relationships refers to an organizational structure in which every employee is placed
somewhere on an organizational chart. The employees report to the employee who is listed above them on the
organizational chart. When every employee reports to one other employee, decisions and communication are
tightly controlled and they flow down the chain of command throughout the organization. This is an
intentional, traditional structure for the chain of command in organizations that want to tightly control the
dissemination of information and the allocation of power and control. Historically, this was the preferred
structure for an organization. The chain of command not only establishes accountability, it lays out a
company’s lines of authority and decision-making power. Looking like a pyramid, the 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. The chain of command is an unbroken line of authority that links all persons in an organization and
defines who reports to whom. 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. A proper chain of
command ensures that every task, job position and department has one person assuming responsibility for
performance.

1- GENERAL POINTS ON THE CHAIN OF COMMAND

A- Chain of Command Formation
The 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.
B- Reporting Relationships and Organizational Chart
The 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.
C- Span of Control
A 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.

2- THE DIFFERENT CHAINS OF COMMAND

A chain of command or organizational chart depends on the needs and the type of organization desired for the
company. In general, there are three main types of org charts: matrix, flat and hierarchical.

A- Matrix organizational structure

In a Matrix organizational structure, the reporting relationships are set up as a grid, or matrix,
rather than in the traditional hierarchy. It is a type of organizational management in which people
with similar skills are pooled for work assignments, resulting in more than one manager to report
to (sometimes referred to as solid line and dotted line reports, in reference to traditional
business organization charts). For example, all engineers may be in one engineering department
and report to an engineering manager. However, these same engineers may be assigned to
different projects and might be reporting to those project managers as well. Therefore, some
engineers might have to work with multiple managers in their job role.

B- Flat Structure
The Flat structure also named Horizontal chain of command is an organizational chart type
mostly adopted by small companies and start-ups in their early stage. It’s almost impossible to
use this model for larger companies with many projects and employees. The most important
thing about this structure is that many levels of middle management are eliminated so the chain
of command of that organization looks more flat or horizontal. This enables employees to make
decisions quickly and independently since power is distributed among employees. Thus, a well-
trained workforce can be more productive by directly getting involved in the decision-making
process. This works well for small companies because work and effort in a small company are
relatively transparent. This does not mean that employees do not have superiors and people to
report. Just that decision making power is shared and employees are held accountable for their
decisions. The chain may only consist of the owner or founder followed by a middle manager
and then the group of employees or the CEO a manager and employees, making for a very short
chain of command. Lacking bureaucracy, flat organizations can readily mobilize to meet
market conditions.

C- Hierarchical structure
Hierarchical structure also named Vertical Organizational structure or Traditional chain of
command structure has more steps and levels to its hierarchy than a flat chain of command. Each
manager is typically only responsible for managing a few associates, so their level of control is
more narrow and usually confined to their department. With a vertical chain of command, you
may notice that the company's rules, processes and procedures are more fixed, and they come
from the top leaders of the organization who then give other managers the responsibility of
disseminating information.
It’s common to see the traditional 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.

3- LEVELS OF MANAGEMENT

There are three general levels of management: top, middle, and front-line managers also named white
collars in comparison with the employees named blue collars.

A- Top Managers
Top managers are in charge of the overall performance and health of the company by controlling
and overseeing the entire organization. They are the ones who set the goals, objectives, and
mission for the company. Top-level executives spend the majority of their
time planning and decision-making and consistently scan the business environment
for opportunities and threats.
Some of their duties include:
 Set company goals and objectives
 Scan external environment
 Plan strategically and make decisions
Some examples of a top managers include the following: Board of directors, chief executive
officer (CEO), chief financial officer (CFO), chief operating officer (COO), president, and vice
president.

B- Middle Managers
Middle managers are responsible for achieving the objectives set by the top managers
by developing and implementing activities. They oversee the first line managers and make sure
they are properly executing the activities they set out.
Some of their duties include:
 Report to top management
 Oversee first-Line managers
 Allocate resources
 Design, develop and implement activities
Some examples of middle managers include the following: General managers, department
managers, operations manager, division manager, branch manager, and division manager.

C- Front-Line Managers
Front-line manages also named First line managers are in charge of supervising employees and
coordinating their day-to-day activities. They need to make sure that the work done by
their employees is consistent with the plans that the upper management set out for the company.
Some of their duties include:
 Report to middle managers
 Supervise employees
 Organize activities
 Involved in day-to-day business operations
 Some examples of a first-line manager include the following: department head, foreman, office
manager, section head, shift boss, and supervisor.

4- ADVANTAGES AND DISADVANTAGES OF A CHAIN OF COMMAND

As with most things at a company, there are certain advantages and disadvantages to having a chain in
command in place. Consider these pros and cons when deciding on building a chain of command or following
your current one:

A- Chain of command advantages

Here are just some of the advantages you can expect from having a chain in command in place:
Increased efficiency
When an employee has just one person to report to, they will likely work together closely,
resulting in faster communication and the ability to solve problems quickly. For instance,
imagine a team member who is working on solving a customer issue. Their direct
supervisor probably has a better understanding of their department's operations and how
best to solve the issue. Rather than an employee going to the next higher manager, their
supervisor can provide them with valuable guidance quickly. The supervisor can escalate
the problem to upper management if they need to.
Clear direction
When there isn't a chain of command in place, an employee may receive conflicting
directions and instructions from various members of management. A chain of command
helps eliminate confusion or having to decide which manager to listen to when
proceeding on a task or project.
Stability
It's natural for employees to have questions throughout the day or need some guidance on
their work. It's also important that they have work goals and someone who is there to
support them. Having a chain of command provides stability so they can experience these
things. An employee will know exactly who they should approach for feedback or help,
and therefore, feel more in control of their role and more stable in the workplace. With a
chain of command, an employee also comes to understand what their manager's
expectations are and which situations require a manager to get involved.
Accountability
With a chain of command in place, supervisors and managers have a close working
relationship with their direct reports and are more aware of their responsibilities and what
projects they are working on at any given time. This can lead to more accountability and
increased productivity, as employees have someone guiding them to success.
Structured responsibility
Each employee that appears in a chain of command has their own set of responsibilities.
With a chain of command in place, everyone is aware of what their job entails and what
they have to do to meet goals and help the company succeed.
Outside understanding
Certain titles carry a certain weight with individuals outside of the organization. For
example, an upset customer may want to speak with a senior manager because they
understand that this person has more ability to solve their problems.

B- Chain of command disadvantages

As great as a chain of command could be, there are some disadvantages to having one in the
workplace. The disadvantages include:
Less collaboration
An organization with a chain of command can have less collaboration in the workplace
because those at the top of the hierarchy set the rules and standards and they expect
everyone else to comply. While middle managers and employees may have some say in
decisions or have some autonomy in their work, it's the authority figures who approve
everything and choose how the company operates. Also, if the chain of command is
respected, an employee may never have the chance to get to know those above their
direct superior.
Slow communication
If a question, concern or idea has to go up several steps of the chain of command so that
upper management can address or approve it, it can take some time. This can affect how
quickly employees can do things like complete their project or resolve a customer issue.
Decreased employee empowerment
Without a chain of command, it's likely that an organization values employee
empowerment and giving its staff the ability to make decisions related to their work or a
particular situation. A chain of command can decrease this employee authority.
More competition
With a chain of command, decision-making managers could feel in competition with their
fellow managers because they may feel protective over their employees and want to exert
control over their team. This could lead to a culture of distrust among peer managers.