A hierarchical structure is an organizational structure where every entity in the organization, except one, is subordinate to a single other entity. In this structure, there is a chain of command from the top of the organization to the bottom, with the most authoritative professionals at the top and the least authoritative at the bottom. This is the dominant mode of organization among large organizations, including most corporations, governments, criminal enterprises, and organized religions. Members of hierarchical organizational structures chiefly communicate with their immediate superior and with their immediate subordinates.

Hierarchical structures are useful because they establish a clear communication structure, reduce communication overhead by limiting information flow, and allow for tight control over the design, quality, production, and distribution of goods. However, they have also been criticized for inhibiting cross-team teamwork and creating bureaucracy and silos.

Other types of organizational structures include flat structures, where there are few levels between upper management and staff-level employees, and functional structures, where employees are organized according to their specific skills and their corresponding function in the company.