Hierarchy is a term that denotes the task and authority relationship in an organization. It clearly shows the reporting relationships of the members appointed at various levels of responsibility and also shows formal lines of communication. Hierarchy is a system in which grade or class of positions or authorities are ranked one above the other in an order.
Need for Hierarchy: Hierarchy basically deals with decision-making power, responsibility, authority, and relationships, between two positions. It helps in introducing delegation level of management, and span of control. Without hierarchy, it is difficult to function smoothly and fulfil objectives of a business. Hierarchy or/and organizational structure is made based on the duties and authority.
Duties: This is a list of activities to be performed by an individual under the conditions of employment. The duties are determined by the employer and may change from one organization to another. It becomes the responsibility of the individual to deliver or perform as agreed in the employment contract.
Authority: It is a right to acquire action from others and the ability to get things done. It is only possible when the individual has sound knowledge, skill, and personal attributes. The level of authority is determined by the employer based on the above qualities.
One should clearly define the chain of command or the line of management when framing an organizational structure. In other terms, this is called hierarchy. This helps in a better assignment, integration, and delegation of responsibilities, and duties.
Hierarchy chart of a typical restaurant
