Welcome to Dhandhekibaat! This is Alok Kejriwal. We are doing the A to Z series. And I want to talk about the alphabet H. I have chosen Hierarchies for this alphabet. A lot of people have written in to me Alok! tell me about hierarchy… How should the heirarchy be in a company? How is it managed? So what is hierarchy ? It’s very simple. There is a CEO, a boss And there is a guy who is the lowest officer in the office, let’s say the office boy. There are layers between these two people. This is called hierarchy. That is hierarchy. So, what is the management of hierarchy? How is the hierarchy managed? It’s very simple. When you are a small startup like a very small young startup, entrepreneurs come together you can even meet your teams everyday Every team member is sitting in the same room. You know who he/she is so, there is no hierarchy. It’s flat. Gradually the Company gets bigger, then even bigger so the meetings are fewer… but everyone is visible. You move around in the office everywhere, see people. You can still meet them. Now the Company grows even bigger, really big. You have offices in multiple locations. Can you see everybody? You can’t. But you can hear everybody. And that is the trick! Whatever is the size of the Company, it may be multinational in 200 countries, you must be able to hear what people are saying. And when I say hear, it doesnt mean you have to actually put your ear to everyone’s door and hear what they are saying. It means there should be a system. where you can read and hear and understand what the employees in your organisation are saying So hierarchies obviously build as the company builds. Now the question is that what is the ideal hierarchy. How should it be? There is no rule. Sometimes flat hierarchies like in Companies like ours which are very very agile; work very very hard and fast are good. But the disadvantage is everybody comes to the boss for decisions. When Companies are very large and bloated like you look at any of the multinationals. You send them a proposal they respond back in 6 months. That hierarchy is not working. I think hierarchies are meant A: for some kind of processing.. ..of decisions and a kind of.. it protects the Company legally also sometimes, hierarchies are important. Otherwise if any mistake is committed, the boss goes behind the bars. Having said that, my belief is that a hierarchy should be flatter and leaner than taller and fatter. But it’s a very personal kind of question. And the more you increase your hierarchy the more costly it becomes but time management also gets improved. So to be honest there is no real good or bad. All I can is say is that measure.. the cost of hierarchy as you layer it up and make sure that there’s a return on every layer you add. It’s like a wedding cake you know We make big cakes but the guests should also eat them. And if that happens then you will be very happy And you will have a perfect hierarchy. So, thank you for watching Dhandhekibaat and keep giving us feedback!