Some organizations utilize the three-tier organizational structure. The structure of an efficient organization allows oversight of the various components within. To that end, a three-tier structure has some distinct advantages. In a three-tier organization, communication usually flows from the top down, with little direct communication from the bottom tier to the top tier.
The top tier can be an individual, as with the pope in the Roman Catholic Church, or it can be a group, such as a board of directors. The top tier tends to issue orders or directives.
The second tier serves as liaison between the top tier and the bottom tier. In most cases, the second tier consists of managers. It monitors the progress of execution of the orders or directives that come from the top tier.
The bottom tier usually consists of workers. In any organization, the wider the base of the bottom tier, the more solid a foundation the organization. The bottom tier follows through on any orders or directives set forth by the top tier.
- Photo Credit Robert Churchill/iStock/Getty Images
Definition of a Tier 1 University
Nailing down one definition of a Tier 1 university is difficult. Though commonalities exist, it is hard to get the many different...
Consulting Firm Organizational Structure
Consulting firms can operate using various organizational structures. The most effective organizational structure for a consulting firm depends on human resources, organizational...
What Is Organization Structure?
Organizational structure provides the guidelines for the system of reporting that drives an organization, dividing it into areas or departments that are...
What Is a Three-Tier System in Insurance?
In health insurance, a "three-tier system" offers differing levels of care or pharmacy co-payment benefit levels. Each level covers different types of...
Structure of Tier 1 & Tier 2 Capital
The structure of Tier 1 and Tier 2 capital mostly relates to the evaluation of a bank's capital adequacy. To ensure that...
Components of a Typical Supply Chain Management
Consider what it took to produce the computer in front of you. First, a company located the raw materials -- the metal...
What Are Tier One and Tier Three Customers?
Many businesses will use a tier system to classify their customers and help employees learn which customers deserve the most time and...