Although we've all heard the phrase "chain of command" since we were kids, you may not fully understand what it means.

If a company has a standard chain of command in place, every employee will know who is over them and whom they need to report to when problems arise. The chain of command helps clear up confusion about who's responsible for what within a company.
The chain of command is vital for the smooth operation of a business because it helps cut through confusion and miscommunication. The chain of command helps speed up decision-making processes and keeps conflicts from getting out of hand. A clear chain of command makes it easier for new hires to become familiar with their roles and responsibilities within the company.