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Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. Business executive hierarchy refers to the executives’ structure in a corporate organization. The prime objective of business executive hierarchy is to make employees realize as to where they stand in the organization & what their responsibilities are.
The hierarchical arrangement of the organizations also helps in developing a communication system through which employees can take support from the higher level employees and can address their problems.
The liberalization of the economy and its movement towards globalization has brought in new challenges for business in terms of business strategies, quality concerns, management systems, technology and cost effectiveness.
To address all these issues and to develop a result & growth oriented positive environment, most of the organizations prefer to adopt hierarchical structures.
In the organizations, this results in improvement of coordination, role understanding, responsibility division and motivation among the employees.
This kind of structure establishes a formal relationship between the professionals at the executive level and every one of them becomes aware of what is expected from his position for the goodwill of the organization.

For example, since Board of directors comes at the top most position in the business executive hierarchy, they must be aware of their responsibilities and accountabilities. Such communication system is called as the formal communications system and it establishes the flow of communication in upward, downward or lateral direction. These days the commitment building, competence building and culture buildings have become quite important concerns of corporations which can be achieved through a good business executive hierarchy. Hierarchies also help in creating departments and then forming teams from the departments which streamline the tasks under individual departments effectively and efficiently, and also creates dynamic performance oriented environment. The hierarchical arrangement of organizations contributes towards linking the individual and organizational goals and what should be the duties and the responsibilities of the employees on day to day basis to support the organizational goals. If this is the case, only then the Executive level officers like CEO, COO, CFO etc., will be able to understand their role clearly.
The organizations which follow such systems have certain protocols for communication which enforce professionalism in the communications across the organization. With proper hierarchies existing within the organizations, it becomes easier to implement process hierarchies by distributing the sub processes and sub sub processes to the employees at the similar levels, as illustrated by the order of business process hierarchies.

This enforces a clear structure, and everybody in the structure is required to play his part well.
This happens because in hierarchies every level is dependent and closely linked to its adjacent levels on both sides of the hierarchy. This also helps in reducing the unnecessary communications which in turn contributes towards the effectiveness of the work. The business process structure can be easily synchronized with the already existing business executive hierarchy, and this way the tasks, duties, responsibility gets easily divided.

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