“For a company to be able to coordinate effectively, it is usually necessary to have a certain internal organization, which allows for a common goal and for all its members to act in a coordinated manner and in the same direction, as well as to make 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 a hierarchical position?
When we speak of a hierarchy in the company, we are referring to the existence of a structure or organization of the company in which an ordering of the position occupied by each one of its components is established.
At the business 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 them 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 of a company
Before entering to evaluate the different hierarchical positions that we can find in a company we must bear in mind that there is no single way to structure an organization of this type, there are different types of configuration in which the power can be distributed in very different ways. different
Thus, we can find different ways to organize the operation and make decisions, which can range from a horizontal distribution of power (such as cooperatives) to a very vertical and marked hierarchy, with more or less intermediate positions.
In this way 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 brought together in the same person.
Then we leave you with some of the main hierarchical positions that appear in most organizations.
1. Executive Director / General
It receives the name of executive director, general manager or Chief Executive Officer (the well-known CEO) 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 starting up the different actions to be carried out in order to achieve the company’s goals.
This is the position of maximum leadership, making decisions at the strategic level and in relation to the policies and way of organizing the company.
2. President and vice president
The second highest authority of the company rests on the figure of its president, often confused by the CEO. The president is in charge of maintaining the general direction and establishing the objectives and general strategies of the company, as well as representing it legally.
The vice presidents are figures of support to the president, who in case of need can get to assume their functions and which can also serve as advisors of this.
3. Department directors
Within even the managerial positions and directly below the general manager we can find the directors of the diverse areas on which a company is constituted. These directors are in charge of directing and developing the strategies that the company will follow with regard to its scope of action, of which they are the ones most responsible.
Examples of this can be found in the positions of director of operations, financial director or director of communications.
4. Managers and managers
Managers are the main intermediate positions that a company has. Its 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.
The position of supervisor would enter inside already of the operational level of the company, being dedicated directly to the management of the activity carried out by the workers. This position is responsible for coordinating and (as its name tells us) supervising the work and the situation of the employees, contributing to the good performance of the activity and to assess the needs and employment status of its employees.
The operational level is considered the most basic level within the hierarchy of the organization and company, which is composed of the different workers and professionals who perform the routine work and carry out the tasks and operations that the top positions indicate how 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 on the stock exchange: shareholders and board of directors
So far we have talked about the different hierarchical positions we can find in a generic organization, but we often find that a company has sold shares on the stock exchange, which also affects the organization of the company. In this sense, two more elements can be taken into account.
Shareholders and general meeting of shareholders
Many companies are run by their founder or founders and operate based on the vision of this or these, but in other cases the operation of the company and its financing depend on the existence of shareholders, which usually organize themselves in a meeting, that in the end they end up being the owners of the company or part of it and have the power to influence its direction. 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 supervising the management of the company. It may be formed by the shareholders or by the directors representing them.