Common Models
All governments and most companies have similar structures. Traditionally, the monarch was the pinnacle of the state. In many countries, feudalism and manorialism provided a formal social structure that established hierarchical links at every level of society, with the monarch at the top.
In modern post-feudal states the nominal top of the hierarchy still remains the head of state, which may be a president or a constitutional monarch, although in many modern states the powers of the head of state are delegated among different bodies. Below the head, there is commonly a senate, parliament or congress, which in turn often delegate the day-to-day running of the country to a prime minister. In many democracies, the people are considered to be the notional top of the hierarchy, over the head of state; in reality, the people's power is restricted to voting in elections.
In business, the business owner traditionally occupied the pinnacle of the organization. In most modern large companies, there is now no longer a single dominant shareholder, and the collective power of the business owners is for most purposes delegated to a board of directors, which in turn delegates the day-to-day running of the company to a managing director or CEO. Again, although the shareholders of the company are the nominal top of the hierarchy, in reality many companies are run at least in part as personal fiefdoms by their management; corporate governance rules are an attempt to mitigate this tendency.
Read more about this topic: Hierarchical Organization
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