The document outlines the concept of a chain of command in organizations, detailing its structure from the top leaders down to individual employees. It discusses the advantages, such as increased efficiency and clear direction, and disadvantages, including slow communication and decreased employee empowerment. The document also mentions variations like flat and vertical chains of command.

1. Version August 2023
Module 3 - CCP for SME Executives:
Onboarding
1
7.0 – Reporting & Chain of Command
What is a
chain of
command?
A chain of
command is an
organizational
structure that
documents
how each
member of a
company
reports to one
another.
At the top of
the chart would
be the founder,
owner or CEO,
and the people
who report to
them would
appear directly
below.
This pattern
continues until
every person or
level of
employment at the
organization is
accounted for. This
hierarchy changes
over time as
employees join and
leave.

2. Version August 2023
Module 3 - CCP for SME Executives:
Onboarding
2
7.0 – Reporting & Chain of Command
Advantages Disadvantages
Increased efficiency Less collaboration
Clear direction Slow communication
Stability Decreased employee empowerment
Accountability More competition
Structured responsibility
Outside understanding

3. Version August 2023
Module 3 - CCP for SME Executives:
Onboarding
3
7.0 – Reporting & Chain of Command
Flat chain of
command
A vertical chain of
command