Hierarchical organizational structure is a network of organizations or business units that are organized into a hierarchy. The hierarchical organizational structure is commonly found in businesses, government agencies, and educational institutions. It can be used as an alternative to a matrix organizational structure. A hierarchical organization has one or more top-level organizations with lower-level organizations that are directly subordinate to them. A hierarchical org chart is a type of organizational chart that arranges its subjects into a hierarchy. The subjects may be departments or individual employees. The diagram divides the organization into levels of authority, with the top level containing the highest-ranking managers and directors. The second level contains middle managers who manage lower-ranking personnel, and so on down to the lowest level which contains workers who report to supervisors at higher levels.