Hierarchy In An Organisation - Doc Download - CiteHR
Ed Llarena, Jr.
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Ishitamehta
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Hi can any one explain me that what levels or Hirearchy we can make in a organisation. From top to bottom how many levels we can prepare and also expalin it with designations. Here i hav attached one Organisation level.If u hav any other plz suggest me.
Thanx

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Hi!

I will attempt to explain the international compensation perspective in understanding hierarchy in private business organizations in relation to your question.

1. The hierarchy in a business organization or company is generally defined by a functional or organizational chart. This chart shows the functional positions from the chairman (of the board) down to the lowest position (like the janitor).

2. The number of positions differ in different companies. Big companies generally have more positions while small ones have fewer positions.

3. When you talk of hierarchy, you talk about the reportorial and supervisory relations between and among the employees of a company.

4. Employees are generally distinguished by the position title given to them. The position title given to an employee can be classified into five job classes, namely: support staff, staff, supervisory, managerial, & executive.

5. The distribution of position titles into the different job classes is generally done through a procedure called Job Evaluation (JE). JE's determine the sizes of jobs. When positions are evaluated, they get point scores and those that get higher point scores are distributed to the higher job classes where their point scores belong.

6. The five job classes are generally given compensation or salary ranges. These salary rate ranges are designed from the lowest position to the highest and given Job Grades. The rates are usually determined by the current market median rates as shown by the compensation survey in the industry or country where the company belongs.

7. The ascending step ladder arrangement of Job Grades are generally group into the five (5) job classification mentioned above. Each Job Grade is given a salary rate range.

8. The determination of salary rate ranges must comply with the 1st and 2nd compensation principles: Internal Equity, & External Competitiveness.

Best regards.
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