"A hierarchical organization is an organizational structure where every entity in the organization, except one, is subordinate to a single other entity. This arrangement is a form of a hierarchy. In an organization, the hierarchy usually consists of a singular/group of power at the top with subsequent levels of power beneath them. This is the dominant mode of organization among large organizations; most corporations, governments, and organized religions are hierarchical organizations with different levels of management, power or authority. ... Members of hierarchical organizational structures chiefly communicate with their immediate superior and with their immediate subordinates. Structuring organizations in this way is useful partly because it can reduce the communication overhead by limiting information flow; this is also its major limitation." [Hierarchical organization. Wikipedia]
"A company's organizational chart typically illustrates relations between people within an organization. Such relations might include managers to sub-workers, directors to managing directors, chief executive officer to various departments, and so forth. When an organization chart grows too large it can be split into smaller charts for separate departments within the organization. The different types of organization charts include: Hierarchical, Matrix, Flat (also known as Horizontal)." [Organizational chart. Wikipedia]
The org chart sample "Hierarchical organization" was created using the ConceptDraw PRO diagramming and vector drawing software extended with the 25 Typical Organizational Charts solution from the Management area of ConceptDraw Solution Park.