Definition: a Hierarchical Organization is a pyramid-shaped type of organization that is typical for small, entrepreneurial organizations.
Power, responsibility and authority are concentrated at the top of the pyramid and decisions flow from the top downwards.
Members of HOs chiefly communicate with their immediate superior and with their immediate subordinates.
Other forms of organizations are: functional organization, matrix organization, network organization.
Not to be confused with the organizational hierarchy, which is the arrangement of entities within a firm according to decision making authority, power, status and job function that is reflected in the organizational structure.
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