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"Hierarchical Structure"

Hierarchical structure is a term used to describe a form of chain of command within a company.

This particular form is the most common one found within businesses. When looked at as an image, it forms a pyramid-style diagram describing the authority within an organization.

When a hierarchical structure is used within a business, it will feature one person at the top in charge of the overall company. This is then followed by increasingly larger numbers of lower management and supervisors.

Typically, each section of a business will have a manager that they refer to. These managers will then have a manager or supervisor to report to. This carries on until the board members report to the CEO or company owner.

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