Hierarchy

economic-dictionary

The hierarchy is a structure in which there is an ascending and descending order. This is determined by the value of the elements or the power they have over each other.

The hierarchy is then a scheme in which some people, objects or entities have greater relevance and interference over the rest, and there may be different categories in which they can be grouped.

The concept of hierarchy is often related to the way communities function. Thus, these can be divided into different social strata.

It can be said that over time what has been changing is the determining element in the hierarchical scheme. In ancient times, it was the divinity, forming theocratic societies. However, now it could be said that economic power is the most predominant.

It is worth mentioning that the hierarchy can also be understood as the group of people who belong to the same category within an entity. That is, the marketing manager and the human resources manager of a company, for example, belong to the same hierarchy.

Hierarchy in companies and entities

Hierarchy, as is clear from the example above, can be applied to analyze the way companies operate. In them there is a scheme headed by the general management and in whose last link the most dispensable employees could be considered.

This hierarchical system in the company is reflected in the organization chart. There the division and interconnection between the different areas and departments is explained.

It should be noted that the academy has questioned that companies operate under a very vertical scheme, with very marked hierarchies where the employee totally depends on his superior. On the contrary, in a more horizontal system, workers could find more freedom to act and to propose innovative ideas.

Another type of entity in which the concept of hierarchy can be applied is the Government. Thus, the president or prime minister is usually at the helm, followed by the ministers, each of whom will be in charge of an entity with its own organization chart.

As a counterpart to the Executive Branch, in a similar hierarchy (depending on the country's political system), we will have the Legislative Branch, represented in a Congress with its own powers.

We can also mention that classic examples of institutions with very marked hierarchies are the army and the church. In such entities, individuals depend almost entirely on their hierarchical superior.

Tags:  Business other banking 

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