The hierarchy of authority in an organization is designed to benefit the company and the employees. The company grows with the strength of a competent managerial staff, and employees look to management to provide career development. A hierarchy is also a method of maintaining managerial integrity.
Characteristics
Hierarchy of authority -- or chain of command -- refers to an organization's line of authority and describes who reports to whom. Related to hierarchy of authority is the span of control, which refers to the number of subordinates over which managers have authority. Organizational structures can either be flat or tall.
