Practical Application: Creating a Hierarchical Organizational Chart

Instructor: Scott Tuning

Scott has been a faculty member in higher education for over 10 years. He holds an MBA in Management, an MA in counseling, and an M.Div. in Academic Biblical Studies.

An organizational hierarchy, or chain of command, is useful because it clarifies the responsibilities associated with each role. Look at this common scenario to apply what you've learned about organizational hierarchy.

Too Many Chiefs

Martha, the incoming CEO of a small hospital in the rural Midwest, had her work cut out for her. The hospital was top heavy, having a management-to-staff ratio of about 1:1.5 FTEs. Worse yet, despite having less than 150 employees, the organization had fully-filled layers of officers, vice presidents, directors, managers, and supervisors. Unfortunately, most were well-intentioned, but objectively under-qualified and overpaid for the roles that they currently filled. ''This is going to be painful,'' thought Martha.

  • What does Martha need to do first?
  • How big do you think Martha's staffing changes will need to be?
  • What are the industry norms in this scenario?
    • If you don't know off the top of your head, what are some reliable sources for this type of data?

Resetting and Reorganizing

When she arrived, here's what Martha inherited as an organizational hierarchy:


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