In human resources, a vertical organization refers to a hierarchical structure within a company or organization where authority and decision-making flow from top to bottom. It signifies a clear chain of command, with each level of management overseeing and directing the level below it. This type of organization is characterized by limited employee autonomy, as employees primarily follow instructions and directives from their superiors.
A practical example of a vertical organization in human resources is a traditional corporate setting. In such an environment, the CEO occupies the highest position, followed by executives, managers, supervisors, and then frontline employees. Each level of management delegates tasks sets goals, and monitors the performance of employees within their purview. Decisions and strategies typically originate at the top and are passed down through the hierarchy for implementation.