How Important is Following the Organizational Chain of Command in the Company?

An important factor in terms of the organizational structure is to follow the chain of command, as it brings many benefits to the company and its other collaborators. If you want to know more about the relevance of following the chain of command, keep reading the topic How important is it to follow the organizational chain of command in the company?

What is the chain of command in the organizational structure of companies?

The chain of command, which should not be confused with unity of command and unity of leadership because they have differences, refers to the different types of levels of command that can occur within an organization. The chain of command, starts from the highest rank / level, which would be the executive director or CEO, or also the owner of the company and culminates in the line of regular workers of the company.

The chain of command as part of the organizational structure of a company, establish communication in which, the instructions flow constantly downwards and the report upwards, which is possible to place a supervisor for each level or department where there are workers.

In view of this, it is possible to understand that, in summary, a chain of command is nothing more than that hierarchy existing in companies, in order to establish reporting relationships, from the highest to the lowest level, on who should obey or answer to whom.

Objectives of the chain of command

  • Improve decision-making and optimize time: when there is a well-established chain of command, the information that is processed may decrease considerably, so only really relevant information is processed. When this happens, what it allows is make better decisions based on important strategic planning that benefit the organization and of course, time is better used.

ceo company discuss problem with employee

  • Eliminate excess information: the chain of command, avoids the annoying problem that the CEO of the company reviews hundreds of ports of each one of the employees. Using the chain of command properly it is possible that rather, each sector of the company, for example, human resources, send a single report with relevant information to the CEO, optimizing the transmission of information.
  • Significantly improve the dissemination of information: if several people inform the CEO of the same problem, it may happen that the information is misrepresented or there are several versions of the same issue. Thanks to the chain of command, this is avoided, since there will only be one in charge of transmitting certain information, saving conflicts and perception problems.

The importance of following the organizational chain of command in the company

There are many aspects in which it is very important to follow the chain of command and all of these lie in the business success of the organization, so let’s see:

Employee morale

Given the importance of morals and ethics in business and other matters, when employees do not properly follow the chain of command, this can lead to affect negatively the morale of managers and / or supervisors and it is there when the importance of it is highlighted. In addition to this, a company that does not have an obvious chain of command will be scattered and disorderly, it will create chaos and therefore, it will affect the morale and job satisfaction of the employees.

meeting company follow chain of command employees happy

When this happens and company morale is very low, consequences will soon be seen, such as lower productivity and the negative consequences of staff turnover will be felt.

Efficiency and productivity

When the chain of command is followed to the letter, it increases efficiency in terms of report situations or problems, since each situation that requires to be reported, will be reported to a pertinent supervisor.

Not directly to the top of the chain of command, because those in that position may not have the opportunity to correct said situation or have the knowledge to do so, in this way, reports are more efficient and time is optimized.. Thus, with this, each employee who is designated to be responsible for an area in the company.

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