The 6 hierarchical positions in a company

In order for a company to be able to coordinate effectively, it is usually necessary that there be a certain internal organization, which allows having a goal common 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 chores. What are the hierarchical positions in a company? Throughout this article we are going to try to make a small summary of the main hierarchical levels that usually exist in an organization.

• Related article: "The 5 main types of commercial companies"

What do we call hierarchical position?

When we speak of a hierarchy in the company we are referring to the existence of a structure or organization of this in which an ordering of the position occupied by each of the components of is.

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 its functions and situation in the organization.

The main hierarchical positions of a company

Before entering to assess the different hierarchical positions that we can find in a company, there are keep in mind that there is no single way to structure an organization of this type, existing various types of configuration in which 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 (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.

Here we leave you with some of the main hierarchical positions that appear in most organizations.

1. CEO / General

Receive the name of CEO, CEO 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 in its set. It would be the person in charge of implementing the different actions to be carried out to achieve the company's goals.

It is the position of maximum leadership, making decisions at a strategic level and with regard to the policies and way of organizing the company.

2. President and Vice President

The second highest authority of the company rests in the figure of its president, often mistaken for the CEO. President he is in charge of maintaining the general direction and establishing the general objectives and strategies of the company, as well as to legally represent it.

The vice-presidents are figures of support to the president, who in case of need can come to assume the functions of him and who can also serve as advisers to this.

• You may be interested: "Types of Leadership: The 5 most common types of leader"

3. Department directors

Even within the managerial positions and directly below the general manager, we can find the directors of the various areas on which a company is constituted. These directors are in charge of directing and developing the strategies that the company is going to follow in relation to its scope of action, for which they are the most responsible.

Examples of this are found in the positions of operations director, financial director or communications director.

4. Managers and bosses

The 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 superiors. They have the power to make decisions at the technical level.

5. Supervisors

The position of supervisor would already 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 tells us) supervising the work and the situation of the employees, contributing to the proper performance of the activity and to assess the needs and employment situation of its employees.

6. Operators

It is considered at the operational level the most basic level within the hierarchy of the organization and company, which is made up of the different operators and professionals who perform routine work and carry out the tasks and operations that higher positions indicate to them how their work specific. It 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 market: 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 market, something that also affects the organization of the company. business. In this sense, two more elements may arise to take into account.

Shareholders and general meeting of shareholders

Many companies are run by their founder or founders and work based on the vision of this or these, but nevertheless in other cases the operation of the company and its financing depend on the existence of shareholders, which are usually organized in a board, which ultimately ends 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 it is a body set up by the shareholders' meeting which is responsible for guiding and supervising the direction of the company. It can be made up of shareholders or by directors who represent them.

Bibliographic references:

• Ebner, A. and Beck N. (2008) The Institutions of the Market. Oxford University Press.
• Tarragó Sabaté, F. (1989). Fundamentals of Business Economics. Barcelona: Hispanic American.