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Definition of hierarchical: Having a structure consisting of multiple levels. A hierarchical business structure would mean that the chain of command looks like a pyramid, with a large base of workers, who are directly ... Dictionary Term of Day Articles Subjects Sign Up BusinessDictionary
A hierarchical corporate culture is an organizational model based on clearly defined corporate levels and structures. Hierarchy is a type of organizational structure in which items are ranked according to levels of importance. In a corporate environment, hierarchies depend upon structure, rules and top-down control to guide business practices and activities. An adherence to identified best practices, controlled processes and considerable oversight are considered essential to productivity and success. Critics of hierarchical corporate culture, on the other hand, argue that the control and rigidity of the model stifle creativity and employee initiative. Other types of corporate culture models include: 1  Adhocracies, which emphasize the ability to adapt quickly to changing conditions.