Example of a management pyramid in an organization
Posted: Thu Jan 30, 2025 4:35 am
As an example of the formation of management levels in an organization, let's consider a small printing house. In addition to the owner, who is also the CEO, there is a manager who accepts orders, a specialist who controls production, a marketer, and an accountant. In this case, the head of the company is aware of the details of buy weight loss leads each order.
This minimal management pyramid is typical for small startups, where everyone is equal and the only boss is the owner of the company.
When the team is small - 5-8 people, the manager controls everyone quite easily. As the company grows, this becomes increasingly difficult. The management pyramid is needed to simplify this task.
Let's say the printing house is doing well, there are quite a lot of orders, so the manager decides to expand the team. He hires additional workers for production, customer service managers, marketers and appoints a manager for each department.
This is the process of forming the next level of the pyramid in the organization's management system. Now the owner will not control the printing of each order and approve each advertisement - these tasks will be solved within the framework of the work of department heads.
The CEO sets a task for the head of the department, and he passes it on to his employees and monitors its implementation.
Example of a management pyramid in an organization
Source: shutterstock.com
The CEO must understand that in order to scale, he must spend less time on operational activities and managing the printing house. To do this, a company manager is hired, and the owner takes on the issues of building business processes aimed at scaling the business. Delegating tasks to a manager in the first printing house will allow the CEO to open a second printing house.
Next, you can start launching several more printing houses in different cities, which means you will need to hire a COO - an operations director who would supervise the managers at each location.
This pyramid assumes that the CEO sets tasks for the COO, and he controls the implementation of these tasks by branch managers.
Read also!
"Marketer's KPI - Key Indicators and Accurate Calculation"
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Theory of Organization Management in Management
Management experts have developed an alternative theory of company management. It assumes that employees are divided into several levels, but segmentation is related to the strategic management of the enterprise.
This theory distinguishes the following levels:
This minimal management pyramid is typical for small startups, where everyone is equal and the only boss is the owner of the company.
When the team is small - 5-8 people, the manager controls everyone quite easily. As the company grows, this becomes increasingly difficult. The management pyramid is needed to simplify this task.
Let's say the printing house is doing well, there are quite a lot of orders, so the manager decides to expand the team. He hires additional workers for production, customer service managers, marketers and appoints a manager for each department.
This is the process of forming the next level of the pyramid in the organization's management system. Now the owner will not control the printing of each order and approve each advertisement - these tasks will be solved within the framework of the work of department heads.
The CEO sets a task for the head of the department, and he passes it on to his employees and monitors its implementation.
Example of a management pyramid in an organization
Source: shutterstock.com
The CEO must understand that in order to scale, he must spend less time on operational activities and managing the printing house. To do this, a company manager is hired, and the owner takes on the issues of building business processes aimed at scaling the business. Delegating tasks to a manager in the first printing house will allow the CEO to open a second printing house.
Next, you can start launching several more printing houses in different cities, which means you will need to hire a COO - an operations director who would supervise the managers at each location.
This pyramid assumes that the CEO sets tasks for the COO, and he controls the implementation of these tasks by branch managers.
Read also!
"Marketer's KPI - Key Indicators and Accurate Calculation"
Read more
Theory of Organization Management in Management
Management experts have developed an alternative theory of company management. It assumes that employees are divided into several levels, but segmentation is related to the strategic management of the enterprise.
This theory distinguishes the following levels: