How Hierarchy Structures Work
´The actual hierarchy varies greatly in the business world, but the roles listed here are commonly used – with shareholders at the top and employees at the bottom.
´A small business can have a simple hierarchy, with a boss that is essentially the CEO and President and a few employees, with no intermediary between the owner and employee.
´The larger a business becomes, the more complex the hierarchy.
´A Fortune 500 company will have a CEO who is beholden to a board and to the shareholders.
´Below the CEO are a number of different department heads, often with each department acting like an entire business of its own.
´The shareholders are the people who own the business. They are not always involved in day-to-day operations, and the group can include anyone owning stock in a publicly traded company or the top level owners who control the majority share of ownership.
´They don't necessarily fit within the operati...