In: Accounting
Authority base in an organization
An organization functions with big group of people who are in different level of works. These people with different authority and different responsibility work together for the common goal of the organization. A proper and well defined structure in between them are important to ensure smooth flow of communication. The organization structure defines these by giving a specific authority and responsibility to each level of employees. An organizational chart is a diagram that visually conveys a company's internal structure by detailing the roles, responsibilities, and relationships between individuals within an entity.
Managerial hierarchy (also called the management pyramid) is defined by the levels of management within an organization. Generally, the management structure has three levels: top, middle, and supervisory management. In a managerial hierarchy, each organizational unit is controlled and supervised by a manager in a higher unit. The person with the most formal authority is at the top of the hierarchy. The higher a manager, the more power he or she has. Thus, the amount of power decreases as you move down the management pyramid. At the same time, the number of employees increases as you move down the hierarchy.
The organizational structure also illustrates the line of communication also. It may be from top to bottom or bottom to top. Higher level include key managerial persons, chairman etc those are concentrating on decision making strategy formation etc. The middle level comprise of managers and supervisors who acts as a connecting link between the top management and lower level workers. The manages the day to day activities and makes the top level decisions function in its track. The lower level employees are the real blood of organization who makes the things happen.
The authority vest in the hands of top level key managerial personnel but the success of any organization depend on the collective efforts of each and every one who are part of it.