The chain of command is an all-encompassing term describing the order in which authority and control pass down from senior management to entry-level employees. The chain of command is present in every organization – whether its presence is formal or informal. This component of organizational structure primarily dictates how managers and their subordinates interact in the workplace.
Understanding the chain of command
The nature of these relationships is often depicted on an organizational chart which is the easiest way to show the chain of command’s hierarchy. That is, employees will report to those placed above them on the chart and lead or manage those placed beneath them.
In addition to business, the chain of command is widely used in the military and other contexts requiring discipline such as police departments. In either case, the chain of command clarifies whom employees should report to and the individuals that hold decision-making power. In many cases, the chain also dictates who has access to important information.
The structure of a typical chain of command
Depending on the company and its culture, industry, or preference, there may be subtle differences in the structure of the chain of command. However, most will feature positions from three levels of management.
Top managers
Top managers oversee the entire organization, define its mission and vision and formulate the strategy to support it. These individuals also spend time scanning the business environment for threats and opportunities. Personnel includes:
The Chairman or Chief Executive Officer (CEO).
Other C-level roles such as the CFO, COO, and CIO, and
The Board of Directors.
Middle managers
If top managers are responsible for strategy formulation, middle managers are responsible for strategy implementation and meeting objectives. They allocate resources, develop and plan activities, and ensure line managers execute those activities properly.
Examples include:
General managers.
Department managers.
Regional managers.
Operations managers.
Division managers, and
Branch managers.
Front-line managers
These are managers who supervise employees and are responsible for planning and coordinating their daily activities. They report to middle management to ensure operations align with company strategy and further its objectives.
Examples of front-line managers include:
Department manager.
Foreman.
Shift supervisor.
Shift boss, and
Section head.
Main advantages of the chain of command
Efficiency
The clarity around roles, responsibilities, and reporting in a chain of command increases the organization’s efficiency. Employees can perform their roles without fear of overextending themselves and understand how their role fits in with the company’s broader objectives.
The efficiency of communication is also increased. Unlike the matrix structure, employees have ready access to a manager or leader when they require clarification before performing a task or making a decision.
Growth and development
In a hierarchical organizational structure, the chain of command can create an adversarial or individualistic culture where each employee is only concerned with climbing the ladder.
Conversely, it can also illustrate a clear pathway for a low-level employee who wants to contribute to the growth of the company and develop their careers at the same time.
Delegation
In theory, the chain of command simplifies the delegation process and avoids situations where a naturally dominant employee takes charge of others without the title to match. In a clear chain of command, each employee understands who to take orders from.
Managers can also delegate to others to ensure continuity of the work. If a senior manager had to miss a meeting, for example, they could delegate to a trusted subordinate who would temporarily act on their behalf.
Key takeaways:
The chain of command is an all-encompassing term describing the order in which authority and control pass down from senior management to entry-level employees.
Depending on the company and its culture, industry, or preference, there may be subtle differences in the structure of the chain of command. However, most will feature top, middle, and front-line managers with various roles.
The main advantage of the chain of command is the efficiency of roles, responsibilities, reporting, and communication. It also provides a clear pathway for career progression and simplifies the delegation process.
In a flat organizational structure, there is little to no middle management between employees and executives. Therefore it reduces the space between employees and executives to enable an effective communication flow within the organization, thus being faster and leaner.
Gennaro is the creator of FourWeekMBA, which reached about four million business people, comprising C-level executives, investors, analysts, product managers, and aspiring digital entrepreneurs in 2022 alone | He is also Director of Sales for a high-tech scaleup in the AI Industry | In 2012, Gennaro earned an International MBA with emphasis on Corporate Finance and Business Strategy.
