Understanding the Hierarchy of a Business: What to Do )and Not) in Building a Business

Bad management can, and has, ruined small businesses. Bad management may come in the form of pure incompetence or it may come in the form of someone proactively working against the better interests of the business. Whatever the logic and basis for the failures, bad management almost always equates to a bad business somewhere along the line.

As a higher manager or an owner, what is the answer to making sure lower management is apt to the task? How does one look at the big picture and find resolution and quality in lower tiers of management?

Limiting the Hierarchy

The hierarchy is something that can go way out of hand in a business. Many small business owners fail partly because of an insistence on a distinctly tiered high-end hierarchy. This means that they have multiple levels of management when only a few will suffice. They are trying to design the business like Disney where a small two or three tier operation is perfectly acceptable. This creates a “too many cooks in the kitchen” dilemma. Too many power players are involved in the firm. There are too many people “playing the game,” as they say, and it separates focus and creates unhealthy competition.

Squishing the Hierarchy

The above can lead directly into a strategy called “squishing the hierarchy.” A distinctly separated hierarchy creates the types of environments mentioned above. But, it also creates a needless separation of tasks. One manager here. Another there. The hierarchy should be squished a little more. In other words, a manager in one area should have an understanding of another. Employees can and should pick up management tasks here and there to get involved in that world and to show their abilities. The hierarchy can be squished, forcing a less disconnected hierarchy that can play off the strengths of others.

A distinctly separated hierarchy may work in some massive firms, but it is less effective in the low to medium scale of business. Small firms can use a more relaxed atmosphere- one where managers know the efforts of other managers and employees can shine by picking up tasks outside their immediate barrier. Visit www.glowingstart.com for more on business hierarchy.