What is an Organization tree?

An organization tree is a way of representing the hierarchical nature of reporting. Every employee in the organization, except one, is a subordinate to another employee. In an organization, the hierarchy usually consists of a singular/group power at the top with subsequent levels of power beneath.

Members of hierarchical organizational structures mainly communicate with their immediate superiors and with their immediate subordinates. Structuring organizations in this way is useful partly because it can reduce communication overhead by limiting information flow.