What is a Hierarchical Organization Structure? Meaning.
A Hierarchical Organization Structure is a pyramid-shaped
system that arranges the relations between the entities within an organization
in a top-down way. Power, responsibility and authority are concentrated at
the top of the pyramid and decisions flow from the top downwards. See:
Centralization and Decentralization. The pyramid
can be more steep or more
flat. A steep
pyramid has many layers of management, a flat organization has relatively
few.
The opposite form of organization is a system of relations
wherein the direction of activity is not fixed in one way (top-down), but
flows back and forth between the entities involved. In other words, the parties
must consent to each others direction of activity.
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See also: Organization
Chart | Organizational
Configurations |
Chain of Command |
Formal Organization
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