My original thought was to launch this article stating you should have an official or unofficial chain of command, but I rescind that idea.

In my opinion, every business must have an official written chain of command in place. Chain of command, organizational hierarchy, responsibility ladder or corporate structure — the terms and phrases all mean the same thing and every organization has one.

Good companies have statements that are formal and written because those statements that are not written anywhere are extremely dangerous to effective operations of an organization.

Why must you have a written chain of command? It provides stability, clarity of responsibility/authority and sets the official structure for the organization in regards to operations and personnel issues. Chains of command are usually applied to the military, but it is a term that is applicable to all organizations.

Regardless of the size or type of organization with which you are associated or whether your statement is written or not, I am confident that your business does have a chain of command.

The difference between the two is whether management established it or it has been developed by the strongest willed individuals being left in charge. Organizational size or structure is immaterial as each should have one written and visible chain of command that applies to the entire organization.

This truth applies to public and private companies, non-profits and even family-operated businesses.

Irrespective to the type of company, I recommend the organizational chart be posted along with your state and federally mandated notices, or at least post it right next to the time cards.

This ensures that everyone is reminded of how responsibility and authority works within your organization. I have found that without a clear understanding of this chain of command, organizations are often run by the wrong individuals, some of whom have no official authority. When those individuals make decisions, it is often difficult to hold them accountable since the official authority structure is either missing or disregarded. One philosophy that may compound the problem is the total open-door policy.

The idea a few years ago was for managers to have an open-door policy for all employees, but remember that this may destroy the chain of command necessary to operate effectively.

If you have an open door policy allowing employee’s access to you without following the chain you are cultivating distrust, confusion, and managerial problems within your organization. Immaterial of other measures you may take to maintain a smooth operation this type of policy will undermine your manager’s ability to control operations. Every organization I have experienced with this type policy had a dysfunctional operation with little respect for authority or operational procedures within the organization. I caution you to think about this philosophy very carefully and, ask yourself if you have such little respect or confidence in your supervisors that you want to hamstring them with this work environment.

Having an open door policy with very specific guidelines can be a useful management tool, but the key components are it does not circumvent the chain, and the employee does not have to discuss the issue up the chain until they reach the level they desire. There clearly are exceptions such as in the case of emergencies, harassment, illegal activities, or other items defined by law. These points must be in your chain of command and open door policy.

So if you do not have your chain of command, organizational chart or corporate structure written and prominently posted, please do so now and save yourself grief later.