How Hierarchy Management Improves Business Processes And Decisions

Amongst key factors in improving business performance, hierarchy management plays an important role. It has been working perfectly for MNCs and several other businesses. This blog educates and helps you discover benefits of hierarchy management and how it is relevant to your business/company.

· 6 min read
How Hierarchy Management Improves Business Processes And Decisions

Every business owner or entrepreneur wants their business to grow and scale. We’re sure that you want the same for your company. But here’s a wonderful fact that we bet you might not be aware of:

“Today, 90% of professional analytics and business gurus say that data-driven decisions are an integral key to their organisation’s growth.” (Source: Gartner)

Taking the right decisions and developing efficient processes, using business analytics and data would transform your business from gold to diamond.

“A company’s ability to compete in the emerging digital economy will require faster-paced, forward-looking decisions,” - Douglas Laney, VP analyst. 

When it comes to improving business processes and decisions, hierarchy management is a game-changer concept. It’s the hidden secret for every MNC's success in the long run. Every huge name in the market uses it, and they are enjoying the taste of success. Keep reading to discover the benefits of hierarchy management and why your business is in dire need of it.

What Are The Benefits of Hierarchy Management?

Every great concept has a wide range of benefits that influences businesses to adopt them. Hierarchy management is one of such fabulous concepts with a long list of advantages. Let’s have a look at some of those benefits that make hierarchy management a “must-have” for every business.

Visualise Data at Multiple Levels And Organisation

One of the best parts about adopting hierarchy management is getting an advantage to visualise data at multiple levels of your company. Visualisation of data means gathering the right data for making efficient business decisions and processes. A CRM with a hierarchy management facility is 10x profitable and advantageous for your business, compared to a CRM without it.

Being a business owner, you might be aware of the fact that data-driven decisions are highly rewarding. Let’s suppose you’re facing issues with team efficiency. So if you have the data about their daily activities, you can modify the work process or office environment to promote employee efficiency.

Every employee is responsible for posting about their daily task completion reports into the CRM. They have to keep their employee dashboard updated with all tasks they have done throughout the day. These reports are really helpful to managers as it allows them to understand the capabilities and efficiency of the employees.

The administration receives timely and updated reports of each task performed by an employee. The performance of an employee in various time frames can be compared and the issues that might be hindering their efficiency can be identified. Once those errors are removed, employee efficiency will be enhanced, resulting in business growth.

Control And Monitor Data Sharing Between Teams

Another great part about having hierarchy management is getting complete control over the data sharing among teams. With hierarchy management features in your CRM, you can check the shared data or reports in real-time.

When managers have control over the data sharing process, they can define what data and information has to be shared and what not. In other words, managers can provide the teams with data precise to their tasks, at each step of the work process. When the right data is provided at the right step, the chances of misinterpretation or confusion about 'what needs to be done' is minimal.

Besides this, Hierarchy management features give you clarity about what’s actually happening inside your firm. Being an entrepreneur, it’s not possible for you to focus on every department of your business. However, with this feature, your CRM will act as your digital assistance. It will update you with every small detail about an employee's daily work.

Scale Business With Proper Team Management

For better sales and revenue, managing the employees the right way, is an integral task. However, for managers, managing multiple teams of various departments isn’t an easy job. That’s when the hierarchy management in your CRM gets into play.

The feature allows you to manage multiple teams from various branches and departments, using just one single dashboard. In other words, this facility enhances your CRMs capabilities to manage multiple teams. Managers can assign daily objectives and tasks to each team and monitor their process, all through one CRM.

When you have a hierarchy management feature installed in your CRM, you get an amazing advantage known as - “Performance check of employees”. Since every employee is integrated into one system, their progress is automatically recorded by the CRM. The administration can use hierarchy management to govern the performance of departments and teams throughout various branches.

With proper records of progress reports, it’s easy to work towards enhancing employee efficiency - because you are aware of their lacking areas and pain points. All this is possible because of the presence of the hierarchy management feature.

Define Privileges And Roles For Each User

The hierarchy management feature allows managers and administrations to define dedicated roles and privileges for each employee. When every employee is aware of their duties and responsibilities, their efforts will be centred on achieving those goals only. In other words, the hierarchy management feature reduces the amount of employee efforts spent on reading or learning about duties and roles that weren’t meant for them.

Instead, they will divert their focus on the assigned tasks, getting the job done in a more time-efficient manner. Moreover, the hierarchy management feature also allows the customization of duties. This means that managers can change the roles of employees anytime while keeping the workers in the loop of the whole process.

Enable Separate Dashboard For Different Departments And Teams

Every department manager has their dedicated and separate dashboards, where they have to work. With a separate dashboard, user convenience increases as the managers will not encounter information or tasks of other departments, reducing the risk of misinterpretations and wrongful assignment of tasks to their team. Moreover, not just the managers, different teams have their own dashboards. It’s a great advantage, in terms of employee efficiency, as the teams won’t spend their time on tasks that weren’t meant for them.

So these were some of the key advantages of having hierarchy management features in your CRM. Now let's understand if hierarchy management is what your business really needs or not!

Opportunities For Improvement

The opportunities for improvements are easier to identify using the hierarchy management feature. Since you can monitor every task or act of your employees, within the office, determining their area of inefficiency is convenient. It allows you to detect potential errors that employees might be experiencing, affecting their work efficiency.

Removing those errors is the second step, the first is detecting them, which is the toughest. But with this feature in your CRM, identifying lacking areas within the employee work process is a hassle-free job.

These are just a few of the many reasons why it’s important for you to have a CRM with a hierarchy management facility. When we talk about hierarchy planning, it has a wide range of models. What they are and which one to choose, are all explained right below. Keep scrolling!

Different Types of Hierarchy Models You Must Know About

Let's just get started directly with the list of hierarchy models that you must know about. Here's everything you must know about it:

Functional Model
A functional model of hierarchy starts with positions of highest level authorities and goes down to others with fewer responsibilities. In this model, the employees are organised based on their specific skill sets and corresponding role in the firm. Each department is managed differently.

Horizontal Model
This model is perfect for businesses with few levels between staff employees and top management. Once your firm is scaled to an extensive level, you can opt for wide models to accommodate an increased number of employees. This model fosters open communication and gives more responsibilities to employees.

Divisional Model
In the model, the powers are divided among divisions and departments of a company, and the managers of whom will assign the employees with their respective roles. All the chain is directly under the control of top management, as they overlook and present timely updates.

Dual Reporting Models
In this model, the administration delegates the powers and duties to mid-level hierarchy, i.e managers. The difference here is, one employee can get action from multiple managers.

Final Words

Hierarchy management is definitely a feature that you should get installed in your CRM. It’s going to give great benefits in the long run, boosting your business growth exceptionally. For a better future and success, you have to try it! And if you are interested to know about our CRM Teleduce then we would love to assist you.

Try Hierarchy Management Capability in Teleduce