Corporate Hierarchy

Small businesses will generally have simple hierarchical structures, whereas larger corporations have complex levels. Org chart software is used by businesses to outline their corporate hierarchies and provide visibility into the structure for all employees. These tools  define individual roles and facilitate internal communications in the company.

Hierarchical, Functional, Flat or horizontal, Divisional, Matrix and Team-based are some of the most common types of structures a company can choose from. Job design, departmental design, authority designations and company size are basic elements of corporate hierarchy.

A corporate hierarchy is needed for clear roles and responsibilities, improved decision-making and collaboration and full view of the organization. Corporate hierarchies outline reporting frameworks and roles. Expectations around responsibilities can be clarified and set. A company-wide understanding of how teams work together and who makes decisions as well as visibility into the company flows from the top down can be provided by corporate hierarchies. A view of the entire organization can be provided at a glance with visual org charts.

Leaders should clearly define roles and titles, look at the big picture and make changes based on feedback and experience when selecting and mapping their corporate hierarchy.