Hierarchical Organization Structure

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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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