The chain of command in a company refers to the different levels of command within the
organization. It starts with the top position such as CEO or the business owner, all the way down to the front-line
workers. Companies create a chain of command in order to flow instructions downward and accountability upward by providing each level of
workers with a supervisor. Show Establishing a Chain of CommandEach company has a different organizational structure, which translates to its chain of command. A company’s hierarchy starts with the CEO at the top. Following the CEO are the vice president and upper management employees who report directly to the CEO. Then, there are department managers and supervisors who report to the higher-level executives. Lastly, come the front-line workers who report to their respective supervisor and department manager. Every employee recognizes the structure of the company when a chain of command is in place. [button link=”https://strategiccfo.com/how-to-be-a-wingman?utm_source=wiki&utm_medium=button%20cta” bg_color=”#eb6500″]Click here to Download the How to be a Wingman Guide [/button] Levels of ManagementThere are three general levels of management: top, middle, and front-line managers. Top ManagersTop managers are in charge of the overall performance and health of the
company by controlling and overseeing the entire organization. They are the ones who set the goals, objectives, and mission for the company. Top-level executives spend the majority of their time planning and
decision-making and consistently scan the business environment for opportunities and threats.
Some examples of a top managers include the following: Board of directors, chief executive officer (CEO), chief financial officer (CFO), chief operating officer (COO), president, and vice president. Middle ManagersMiddle managers are responsible for achieving the objectives set by the top managers by developing and implementing activities. They oversee the first line managers and make sure they
are properly executing the activities they set out.
Some examples of a middle managers include the following: General managers, department managers, operations manager, division manager, branch manager, and division manager. First-Line ManagersFirst line managers are in charge of supervising employees and coordinating their day-to-day activities. They need to make sure that the work done by their employees is consistent with the
plans that the upper management set out for the company.
Some examples of a first-line manager include the following: department head, foreman, office manager, section head, shift boss, and supervisor. Advantages of a Good Chain of CommandThere are numerous advantages that can come from having a good Chain of Command, including
the following: Why Chain of Command Matters to a CFOEven though most top-level executives do not often interact with front-line operations, they still need to be aware of
everything that is going on in the company. CFOs especially need to make sure their ideas/objectives are properly being executed and delegated through the chain of command. Even if
top-management has the biggest impact on the company, front-line workers are the ones that interact the most with the
customer most of the time. For example, ABC Co. is a company that owns office supply stores. The store employees are constantly receiving criticism for being rude and uncourteous to customers – ultimately leading
to people choosing to buy office supplies elsewhere. This can directly affect the company’s revenues and therefore, the CFO‘s projections. A good top-manager should occasionally check on its bottom managers to see if they are properly carrying out
their tasks to prevent problems like this from happening. |