Pyramid of Power in Organization

A pyramid organizational structure is a hierarchy with the executive level at the top and descending levels from middle management to the lower levels of the organization. The idea behind the structure is that each upper level is able to function because of support from the lower portions of the pyramid.

The primary concept of the pyramid organizational structure is that the lower levels of the organization follow the commands of top level employees. In essence, the executives control all key elements of the company. This includes strategy, operations, and overall vision.
There are typically three major levels in pyramid organizational structure: executives, managers, and staff. Managers usually oversee specific departments or products and report directly to the executives. Staff supports managers by performing tasks that fulfill the directives coming from the executive level. Some organizations may have an assistant manager level between managers and staff.

Functional structure is one of the most traditional models of organizational structure. It divides responsibility by job title. A typical chart outlining this system would have the president or CEO of the company on top and all other positions listed below.

Workers in a pyramid organizational model have a well-defined structure for career advancement. The common path is to move from staff level to manager and executive.
But newer models of organizational structure reject the notion put forth by the pyramid system that the leader of an organization should have complete control over important decision making. They give more responsibility to employees by allowing greater control on a departmental level. This is primarily in response to criticism that executives on the top level of an organization do not have the same understanding of specific departmental issues as the employees who work daily in these areas.