![]() ![]() ![]() Under the upper management level, you may find individual managers or supervisors who are responsible for an entire department or group of employees. These individuals report directly to the owner or CEO. The next level down usually includes senior executives or individuals who are in vice president roles over a part of the organization. It's common to see the same chain of command structure at various organizations, from customer-based businesses to government entities.Ī 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 chain of command is a very traditional way of structuring a company's authority levels. 9 Examples of Chain of Command in Business.2 Chain of Command - Historical Background.In this structure organization is said to be decentralized as many people have an authority of making decisions. If decision making in the organization is at higher level of the chain then the organization is called a centralized organization usually small organizations follow such type of structure and if the decision making is at various levels in the organization. The scalar principle states that there should be a clear line of authority from position of ultimate authority at the top to every individual in the organization.Ī chain of command is shown in the diagram illustrated below. Unity of command means that an individual should have only one boss at any given point in time. The concept of chain of command stems from two basic principles: unity of command and the scalar principle. The chain of command is the unbroken line of authority that ultimately links each individual with the top organizational position through a managerial position at each successive layer in between. A proper chain of command ensures that every task, job position and department has one person assuming responsibility for performance. The chain of command not only establishes accountability, it lays out a company’s lines of authority and decision-making power. In an organizational structure, chain of command refers to a company's hierarchy of reporting relationships – from the bottom to the top of an organization, who must answer to whom. ![]()
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