A single person at the top of organizational structures is not able to effectively control all of the workers in a business organization. This is especially viable when a business grows and employees more and more workers.
That is why daily control of workers (operatives) becomes the responsibility of managers at the lower levels down the hierarchy.
What is chain of command?
Chain of command refers to the formal line of authority and reporting within an organization. It shows how authority and power are passed down within an organization to every employee at every level of the organization.
The route of passing orders and instructions down the chain of command is typically from senior management including Chief Executive Officer (CEO) and Board of Directors through lower level of management to workers. Whereas information about performance and results are passed up the chain of command.
Each employee in the chain of command is directly responsible to the person immediately above them and directly responsible for the person below them. It can be seen through the firm’s organizational chart.
Examples of chain of command
In a company, the chain of command might start with Chief Executive Officer (CEO), followed by senior management, middle management, and finally, employees.
Within the military, the chain of command might start with the President as commander-in-chief, followed by the Secretary of Defense, Joint Chiefs of Staff, and finally, individual soldiers.
In an emergency response, the chain of command might start with the incident commander, followed by representatives from different agencies involved in the response.
In legal contexts, the chain of command can be used to establish who is responsible for certain actions or decisions. This information can be important in determining liability or wrongdoing.
Types of chain of command
The length of chain of command can be clearly seen through the firm’s organization chart. The two types of chain of command include:
- Long chain of command. The chain of command is long in businesses that have many levels in the hierarchical structure. The taller the organizational structure because there are many levels of hierarchy, the longer will be the chain of command. Long chain of command can slow down communication and passing information. Top managers are more remote from the lower level of the hierarchy.
- Short chain of command. The chain of command is short in businesses that have few levels in the hierarchical structure. The flatter the organizational structure because there are few levels of hierarchy, the shorter will be the chain of command. Short chain of command can speed up communication and passing information. Top managers are less remote from the lower level of the hierarchy.
Does length of chain of command matter?
Length of chain of command has consequences for communication effectiveness, spans of control, delegation, motivation and business costs.
In general, the clearer chain of command is, the more effective the decision-making process is improving communication effectiveness. Chain of command is longer in tall organizational structures and shorter in flat organizational structures. While business costs will be higher in firms with longer chain of command because ranks of middle managers are expensive to employ and they take up very costly office accommodation, and lower in firms with shorter chain of command.
In summary, there are a few additional points to mention about chain of command. It can be formal or informal. It can be centralized or decentralized. And, the effectiveness of a chain of command depends on a variety of factors, such as clear communication, trust, and respect for authority.
