Hi, can anyone explain to me what levels or hierarchy we can establish in an organization? From top to bottom, how many levels can we create, and could you also explain it with designations? I have attached one organizational level. If you have any other suggestions, please let me know.
Thank you
From India, Mumbai
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4Thank you
From India, Mumbai
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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.
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).
The number of positions differs in different companies. Big companies generally have more positions while small ones have fewer positions.
When you talk of hierarchy, you talk about the reportorial and supervisory relations between and among the employees of a company.
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, and executive.
The distribution of position titles into the different job classes is generally done through a procedure called Job Evaluation (JE). Job evaluations determine the sizes of jobs. When positions are evaluated, they receive point scores, and those that receive higher point scores are assigned to the higher job classes where their point scores belong.
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.
The ascending step ladder arrangement of job grades is generally grouped into the five job classifications mentioned above. Each job grade is given a salary rate range.
The determination of salary rate ranges must comply with the first and second compensation principles: internal equity and external competitiveness.
Best regards.
From Philippines, Parañaque
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I will attempt to explain the international compensation perspective in understanding hierarchy in private business organizations in relation to your question.
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).
The number of positions differs in different companies. Big companies generally have more positions while small ones have fewer positions.
When you talk of hierarchy, you talk about the reportorial and supervisory relations between and among the employees of a company.
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, and executive.
The distribution of position titles into the different job classes is generally done through a procedure called Job Evaluation (JE). Job evaluations determine the sizes of jobs. When positions are evaluated, they receive point scores, and those that receive higher point scores are assigned to the higher job classes where their point scores belong.
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.
The ascending step ladder arrangement of job grades is generally grouped into the five job classifications mentioned above. Each job grade is given a salary rate range.
The determination of salary rate ranges must comply with the first and second compensation principles: internal equity and external competitiveness.
Best regards.
From Philippines, Parañaque
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