The 6 hierarchical positions in a company
A summary of the different ranks in which we can divide the organization chart of a company.
For a company to be able to coordinate effectively, it is usually necessary to have a certain internal organization, which allows it to have a common objective and that all its members act in a coordinated manner and in the same direction, in addition to making decisions regarding its operation, management and projection.
Although there are several alternatives, one of the most common is the creation of a hierarchical structure, in which different positions represent different roles that can carry out a specific number and type of tasks. What are the hierarchical positions in a company? Throughout this article we will try to make a brief summary of the main hierarchical levels that usually exist in an organization.
What do we call hierarchical position?
When we speak of a hierarchy in the company we are making reference to the existence of a structure or organization of this one in which an arrangement of the position occupied by each one of the components of this one is established.
At the company level, the existence of a hierarchy implies the creation of positions with different functions at the organizational level, in which each of the members of the company has a certain rank that places him in a position of superiority or inferiority at the level of functions, responsibilities and leadership.
Based on this we can understand the concept of hierarchical position as the place or position that each individual occupies within the organizational hierarchy of the company or corporation, something that directly influences their functions and situation in the organization.
The main hierarchical positions in a company
Before going into the different hierarchical positions that can be found in a company, it must be taken into account that there is no single way of structuring an organization of this type, as there are different types of configuration in which power can be distributed in very different ways. different types of configuration in which the power can be distributed in very different ways..
Thus, we can find different ways of organizing the operation and making decisions, which can range from a horizontal distribution of power (as for example in cooperatives) to a very vertical and marked hierarchization, with more or less intermediate positions..
Thus, it is possible that the hierarchical positions indicated below are not present in all of them or that the different roles and positions can be agglutinated in the same person.
Here are some of the main hierarchical positions that appear in most organizations.
1. Chief Executive Officer
The name of executive director, general manager or Chief Executive Officer (known as CEO) is given to the highest position within the company, which has maximum authority over it and whose main function is to manage the company as a whole. It would be the person in charge of implementing the different actions to be taken to achieve the company's goals.
This is the position of maximum leadership, making decisions at the strategic level and in terms of policies and policies and with regard to the company's policies and organization.
2. President and Vice President
The second highest authority in the company rests with the figure of the president of the company, often confused with the CEO. The president is in charge of maintaining the general direction and establishing the company's general objectives and strategies, as well as legally representing the company. and strategies of the company, as well as legally representing it.
The vice presidents are figures of support to the president, which in case of necessity can assume his functions and which can also serve as advisors to the president.
3. Department Directors
Within the managerial positions and directly below the general manager, we can find the directors of the different areas over which the company has to work. directors of the different areas on which a company is constituted.. These directors are in charge of directing and elaborating the strategies that the company is going to follow with regard to its field of action, for which they are the most responsible.
Examples of this can be found in the positions of operations director, financial director or communications director.
4. Managers and managers
Managers are the most important middle management positions in a company.. Their function is to direct and coordinate the workers of a certain section in order to carry out the activities proposed by the superior managers. They have the power to make decisions at a technical level.
5. Supervisors
The position of supervisor would fall within the operational level of the company, being directly dedicated to the management of the activity carried out by the workers. This position is in charge of coordinating and (as its name says) supervising the work and the situation of the employees, contributing to the good performance of the activity and to assess the needs and work situation of the employees. assessing the needs and work situation of its employees..
6. Operators
The operative level is considered to be the most basic level within the hierarchy of the organization and company.This is composed of the different operators and professionals who perform the routine work and carry out the tasks and operations that the higher positions indicate to them as their specific work. This is the most common hierarchical position and the one that carries out the task proposed by the company directly.
When the company is listed on the stock exchange: shareholders and board of directors
So far we have talked about the different hierarchical positions that we can find in a generic organization, but we often find that a company has sold shares on the stock exchange, something that also affects the organization of the company. Two more elements to take into account may arise in this regard.
Shareholders and general meeting of shareholders
Many companies are run by their founder(s) and operate on the basis of the vision of the founder(s), but in other cases, however the operation of the company and its financing depend on the existence of shareholders, who are usually organized in a board of directors.These are usually organized in a board of directors, who ultimately end up being the owners of the company or part of it and have the power to influence its management. They have the power to appoint the members of the board of directors.
Board of directors
The board of directors is a body set up by the shareholders' meeting, which is responsible for guiding and which is responsible for guiding and supervising the management of the company. It may be formed by the shareholders or by directors representing them.
Bibliographical references:
- Ebner, A. and Beck N.(2008) The Institutions of the Market. Oxford University Press.
- Tarragó Sabaté, F. (1989). Fundamentals of Business Economics. Barcelona: Hispano Americana.
(Updated at Apr 13 / 2024)