What is an Organizational Hierarchy? Definition and meaning

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...

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