Organizational Hierarchy

Definition: an Organizational Hierarchy is a pyramid-shaped arrangement of entities within a corporation according to decision making authority, power, status and job function where every entity in the organization, except the top one, is subordinate to a single other entity.
The OH is shown in the organizational structure.
In a large corporation, usually the board of directors is at the top, followed by the CEO. Below the CEO will be other C-level executives, such as the CFO and COO, followed by higher management (vice-presidents/directors/managers), etc.
Nonprofit organizations have similar hierarchies.
Not to be confused with a top-down approach.

Learn more about organizational hierarchies

More on decision making: Centralization, Chain of Command, Decentralization, Delegation, Employee Empowerment, more...

MBA Brief offers accurate and concise definitions of MBA concepts, frameworks, methods and models.

We love to keep things really short, but provide links to learn more about your subject and to similar concepts.