WHAT ARE THE ADVANTAGES OF A HIERARCHICAL LEVEL IN A

COMPANY?
Team 1: Nguyễn Thị Kim Ngân
Võ Nguyễn Tường An
Nguyễn Thị Thu Huyền

Situation:This is a talk show about the economic field of BEC station. With the
theme of hierarchical level, we have two special guests, the director of A2A
Hightech media company - Ms. Lucie, and the head of human resources
department of K&J Group - Ms. Jenny. Today's host will be MC Laura.

MC (Laura): Nguyễn Thị Thu Huyền

Ms Lucie (the director of A2A): Nguyễn Thị Kim Ngân
Ms Jenny ( the head of human resources of K&J Group): Võ Nguyễn Tường An

MC: Good morning everyone, welcome to the BEC talk show. Today we have a
special topic: hierarchical levels. I’m Laura, the host of the BEC interview. I'm
very glad to meet 2 guests coming to our talk show today. Welcome Ms. Lucie-
the director of A2A Hightech media company and Ms-Jenny- the head of human
resources department of K&J Group-. Thank you so much for being here.
As we know, effectively structured organization will help businesses stabilize
their strategies to successfully execute, maintain and develop their current
competitive advantages. Moreover, the most common type of organizational
structure is hierarchical structure. So Ms Lucie can you explain more clearly
about this issue.

Lucie: Thanks for your question. In fact, a hierarchical business structure would
mean that the chain of command looks like a pyramid, with a large base of
workers, who are directly supervised by the smaller level above them, who are in
turn supervised by the level above them, continuing to the top ranking officer
such as the company President or CEO. Alternatively, anything that can be
broken down into a series of levels which range from broad to specific can be
considered hierarchical.

MC: Hierarchical structures have a structure consisting of multiple levels. So

Lucie, do you know why many organizations use hierarchical structure for their
business? And what benefits does this structure have for businesses?

Lucie: In my point of view, the first benefit is efficient leadership and

communication. Having a hierarchical structure helps employees understand the
various levels of leadership. Employees tend to know who talk to when providing
progress updates or reporting issues.

MC: That is a great point. Overall, hierarchical structures can lead to better
communication and collaboration across teams. What do you think about this
idea Jenny?

Jenny: I totally agree with Lucie. This means that communication gets channeled
along defined and predictable paths, which allows those higher in the
organization to direct questions to the appropriate parties. And a benefit that is
also important is the delegation of authority. Instead of having one entity hold all
the authority, a hierarchical structure delegates power to different employees.
This distribution benefits the chief executive officer, as they can focus on making
decisions that affect the entire organization. Supervisors at the department level
have the necessary authority to manage the daily performance of general
employees.
MC: I love this idea. But, for example, a company has 50 employees. General
employees are in teams and report to their supervisors who report to the chief
executive officer. The chief executive holds the most authority and makes
decisions that the supervisors are responsible for implementing and sharing with
their team members. So, as a supervisor, do you think it will affect your ability to
effectively lead and communicate?

Jenny: It doesn’t affect the work and communication effectively of the supervisor
because they can use their authority to delegate tasks and ensure operational
efficiency.

Lucie: I would add that managers have authority according to management level
and have the power to allocate resources, reward and punish behavior, and give
orders to their subordinates. This is an especially useful characteristic during a
crisis, It helps leaders manage and operate the company in a systematic,
effective, and time-saving way.

MC: Great. How about another advantages, Lucie?.

Lucie: For me, Companies with hierarchical structures divide employees into
teams and departments.

MC: Why do you think dividing employees into teams and departments is an
advantage?

Lucie: Because this helps strengthen corporate culture and place more of an
emphasis on teamwork, meaning that everyone within is working towards a
common goal because when employees are part of a department, they tend to
grow a sense of team spirit and loyalty. Strong culture and teamwork will lend a
big boost to an organization’s long-term success.

Jenny: That’s right. It also helps to create various department configurations that
specialize. Specialization allows organizations to concentrate particular skill sets
and resources for maximum efficiency.

MC: Absolutely, So far we have mentioned the benefits of communication,

management, and division of work. So are there any benefits to a company's
human resource management?

Jenny: Yes, I want to mention a beneficial element is clear Promotion Prospects.

MC: Promotion Prospects? Can you explain that?

Jenny: Yes. I mean a hierarchical structure makes it easier for employees to

figure out the various lines of authority and figure out how they might be able to
advance in the company in the future. A hierarchical structure also encourages
employees to pursue any additional qualifications needed for specialized roles.

MC: A super promotion, right?

Jenny: That’s true, by being able to visualize their potential promotion prospects,
employees will likely have higher levels of morale and be much more motivated
to perform well, meet their targets, and contribute to the company’s overall
productivity and profitability. For example, When we look for a job, we always
prioritize jobs that have opportunities for future advancement. So if a company
has a clear path, it will attract many talents and employees who will also want to
stay with the company for a long time.
MC: Yes, those are valid points. However, today large businesses have moved
away from traditional hierarchies in favor of structures that use a team approach
or a network of external suppliers. But the hierarchical structure is the structure
most used by small businesses. In the first point, I heard you mention delegation
of authority. In truth, Hierarchies concentrate power and authority at the highest
possible level, Ms Lucie?

Lucie: In fact, For a small business owner, this can cause several problems.
Instead of making decisions on big issues, planning, and leading, the owner may
get caught up in day-to-day operations, making decisions about what tasks are
best left to people closer to the organization's situation.Although it still has some
small shortcomings, we can affirm the great benefits it brings to businesses, and
it is also necessary for a business to apply this type of structure. This model is for
sustainable and long-term development.

Jenny: I also totally agree with you. We know the hierarchical structure grows,
and so does its hierarchy. Bureaucracy slows everything down – decision-
making, communication, action – and the company becomes a sluggish entity
rather than an agile one.

MC: We have just discussed the hierarchical level in a company, specifically the
advantages of that. As Ms Lucie and Ms Jenny mentioned, we can see 3 benefits
of the hierarchical level, The first is efficient leadership and communication. The
second is the delegation of authority. The third is dividing employees into teams
and departments. And the final is Promotion Prospects. And I would also like to
thank Ms Lucie and Ms Jenny for sharing very interesting and useful comments
in today's talk show. Thank you and see you next time.
Team 2: Phan Thị Mỹ Linh
Nguyễn Như Châu Anh
Mai Kim Ngân

Đặng Thị Thanh Ngân

Situation: A meeting to report on the working situation of the departments in the
company

Mỹ Linh: Good afternoon, thank you for meeting with me today.

We are here to review the working process and how to divide the levels of
additional team members across departments. Report to the main department on
the working situation of the departments in the past 6 months.The first is the HR
department.

Mai Kim Ngân: I can see that my department has operated excellently over the
past six months, and all of the team has successfully carried out their
responsibilities.

Mỹ Linh: Good job. Your department operates so well thanks to a dedicated

manager like you

Thanh Ngân: In the past 6 months, the marketing department has had clear
results compared to previous months. All members try to work their best. All
tasks are clearly and specifically divided for each member.

Mỹ Linh: Can you tell me some of the achievements your department has had in
the past 6 months?
Thanh Ngân: One achievement that I am most proud of is that my department
has used the experience and skills of every employee to promote the company's
products to consumers at home and on the street. And that's worth it. It is said
that the number of consumers is double that of last year.

Mỹ Linh: Congratulations to everyone in your department. Hope everyone will

maintain these achievements. How about Sale Manager department?

Châu Anh: Similar to the previous two departments, I can see that my team- Sale
department has been productive over the previous six months. But even from
that, there are still certain problems that need to be solved, like the unclear rank
system and the inconsistent job distribution among employees. Some staff
members told me they were stressed by their workload because it was so heavy
compared to others'. As a result, employees become less motivated and actively
work harder.

Mỹ Linh: I must praise the departments because most of them work very
extremely hard and bring good results to the company. However, the problem
we encounter here is the advantages of hierarchical levels of staff in our
company. We should have clarity in the division of work corresponding to the
work they must undertake.

Châu Anh: Yes, a clear division of work is imperative for a company. This
hierarchy determines who is responsible for doing the work and who is
responsible for ensuring the larger task is completed. The boss is the one who
must carefully review the employee's work and point out the advantages and
disadvantages, what can and cannot be done, while the employee needs to rely
on the boss's instructions to complete the job. mine.
Mai Kim Ngân: I agree with your point of view. When it is about planning the
company's activities, rank division is essential. In some organizational systems, a
single manager is responsible for managing employees from various He might
have a fundamental awareness of several functionalities, but he won't have a
thorough grasp of that particular talent or job role.

Mỹ Linh: So in your opinion, how effective is the hierarchy?

Mai Kim Ngân: We'll be able to hire managers with specific skills. It will be
incredibly simple to hire managers with the right skills at each level. You can
specify the important roles required for each level of management by separating
the levels.

Châu Anh: I also see that managers will be more successful in assisting workers
in solving complicated challenges if they are employed for specific tasks and
have a defined skill set.

Thanh Ngân: Employees are subject to proper authority and control. Functional
interaction ladders rise from top-level management in a hierarchical system.
Departments are designated inside the pyramid with defined roles, duties, and
objectives. Additionally, they are given capable supervisors for administrative and
quality control purposes. Employees will be aware of whom, how, and when to
report in this vertical structure. They will also be aware of the obligations they
have to their peers and superiors.

Mỹ Linh: Can you give us some examples for your idea ?

Thanh Ngân: For instance, our organization might have three departments
related to marketing and two to project development. A project development
department might have a deputy manager, head project developer, two project
team-leads, and two teams of seven project development executives as opposed
to a marketing department, which might have a deputy manager, three team
leads, three associate team leads, and twelve business development executives.

Châu Anh: Besides that, one of the most important of hierarchical is there will be
more interdepartmental loyalty. Employees form bonds and build trust when they
cooperate to achieve shared roles, objectives, and purposes, all the while
advancing the aims. Over time, each division has developed its own set of
communication jargons that serve to conveniently unite the individuals inside that
sector.

Mỹ Linh: Yes, I agree with this point. Additionally, miscommunication between

personnel regarding reporting, updating, leading, or heading projects is
eliminated by a clear organizational structure. When faced with similar issues,
employees support one another's growth by exchanging knowledge and
experiences.

Thanh Ngân: Additionally, it offers middle managers someone to look toward in

cases of trouble.

Mai Kim Ngân: Moreover, I see that the division of hierarchy is not simply for the
purpose of creating status and position for each individual and employee in the
company's business activities, but also for the purpose of advising and planning
according to macro development policies. It is also a policy to recruit, attract and
retain talented people, people with capacity and work experience; In addition, this
is also a form to reward and honor the contributions of employees.
Châu Anh: A business cannot operate well and cannot even survive without
hierarchy. If there is no division of ranks and functional departments, each
individual in a group will not have a development orientation and will not be able
to properly perform their duties, functions and powers, leading to job insecurity. ,
does not help businesses grow

Thanh Ngân: I completely agree with your opinion. In business, there always
exists a group of people with different interests. Therefore, it is necessary to have
managers to build management mechanisms, decentralize, decentralize,
consider the interests of all groups in the enterprise.

Châu Anh: The success of a company depends not only on the clear hierarchy
within departments but also on the connection between departments. For large
projects, businesses need the coordination of many departments at the same
time.

Mỹ Linh: I agree with all of your comments. The most persuasive benefit of the
hierarchical organizational structure is that your staff will have clearly defined
tasks and duties, as well as a sense of purpose in carrying out those roles.

Before we close today’s meeting, let me just summarize the main points. Our
departments have reported their work situation over the past 6 months. Through
this, we can see the effectiveness of hierarchical structure in creating a clear
chain of command, clear lines of authority, and department loyalty, therefore
contributing to good working results for departments. If there’s nothing more to
discuss, we can end here. Thanks for your participation