Organizational hierarchies

Definition

Organizational hierarchies refer to the structure within an organization where power and authority are distributed vertically from top-level positions down to lower-level positions. It establishes clear lines of authority, supervision, and decision-making responsibilities.

Related terms

Bureaucracy:

Bureaucracy refers to large hierarchical organizations characterized by formal rules and procedures that govern their operations. It often involves complex administrative systems with specialized divisions.

Centralization: Centralization occurs when decision-making authority is concentrated at the top of an organizational hierarchy. This limits decision-making power for lower-level members and can result in slower response times.

Decentralization:

Decentralization refers to the distribution of decision-making authority to lower levels within an organization. It allows for greater autonomy and flexibility in decision-making, fostering creativity and innovation.