Hierarchy is a technique to bring things, names, objects, categories, values together and put them in an order (high to low). It is a way of telling if two items are above, below or at par with each other. It is a highly useful tool as helps in referring to a variety of systems and organizes them in an order which is often referred to as Hierarchical Structure.
In a hierarchy, things are either related directly or indirectly, or they are either connected vertically or diagonally.
The hierarchy can be of various kinds. Following are some of the examples of a Hierarchy.
- Management Hierarchy
- Social Hierarchy
- Political Hierarchy
- Business Hierarchy
- Jobs Hierarchy
- Company Hierarchy
- Police Hierarchy
- Corporate Hierarchy
- Church Hierarchy
- Military Hierarchy
- Career Hierarchy
- Ancient Hierarchy
- Court Hierarchy
- Education Hierarchy
- Racial Hierarchy
- Sports Hierarchy
- Family Hierarchy
- Royal Hierarchy
- Feudal Hierarchy
- Religion Hierarchy
- Gang Hierarchy
- Financial Hierarchy
- Animal Hierarchy
Following is an example of a hierarchy in details.
Business System Hierarchy
In a business hierarchy system, an individual report to the seniors and supervises the junior. This hierarchy system continues till the managing director and CEO level since they are the top level management in an organization. The hierarchy system is essential in an organization as it provides a clear understanding of an individual’s Jobs and responsibilities. Following is the detailed analysis of the business system hierarchy.
The Hierarchy system of a business:
CEO: The chief executive officer or the CEO of an organization looks after the performance of the business. He is the in charge of the business planning and makes sure it is executed as planned. He is the key decision maker in an organization.
Managing Directors: Managing Directors are highly qualified individuals with an enormous amount of experience. Managing directors look after the entire operations of an organization and make sure that all the departments are working properly.
General Managers: The General Managers report to the Managing Directors and supervise the Senior Managers. General Managers look after various divisions of an organization. They make sure that all the divisions are able to execute and deliver as planned by the Managing Directors. General Managers are good decision makers and their experience helps their senior managers when they are stuck in a situation.
Senior Manager: Senior Managers report to the General Managers and supervise the Assistant Managers. An organization has various functions such as Human resources, Accounts, Finance, Marketing, Operations, Communication etc. It is the responsibility of a Senior Managers to manage a particular department and make sure that his team progresses as desired.
Assistant Manager: Assistant Managers report to the Senior Managers and Supervises the operational level employees. They look after the profitability of the organization. They are also required to report to senior managers of the daily developments of the department. Additionally, they are required to instruct the juniors about their daily tasks and their targets if any. They make a progress report in order to keep a track on the daily growth and development of the organization.
Operational level Employees: These are the key people in the execution of the plans. They deal with the resources and machines. They do the field work for the organization and perform the actual execution of the targets. They report to the Assistant Managers and have Executives working under them.
Executives: They are at the bottom of the hierarchical structure. They ensure that all the daily activities required for the proper functioning of the organization are performed. These activities are then monitored by the senior managers. They make sure to achieve the targets provided by the assistant managers.
Interns: Interns are the lowest in the business hierarchy system. The people are usually not permanent employees of the organization. They get proper training in their field of interest and if they are found valuable by the organization then they can get hired by the organization as a permanent employee.
The division of the business system in the form of business hierarchy helps to ensure that the duties are divided well among the employees and the organization is, therefore, able to function smoothly. The business hierarchy system may vary for different companies however on a broad level it remains the same.
The people at the lower level of the business hierarchy can help with their skills and day to day activities while the people on the higher level of the hierarchy can help with their knowledge and experience.