Corporate hierarchy is nothing but the segregation of a company's workforce based on rank, power, and responsibilities. Most companies typically follow a top-down hierarchy, with higher-level positions enjoying more influence, authority and remuneration than those below them. Hierarchies help companies streamline workflows, establish reporting structures, and ensure accountability from individuals and teams.

Smaller organizations usually have simpler hierarchal systems, while those found in larger organizations are more complex. Many even have multiple hierarchical levels. Within sales teams, it is not uncommon for those at a higher hierarchal level (such as regional managers and country managers) to earn a percentage of revenue generated by those at lower levels (team leaders and sales reps).

Hierarchy is also used to determine who has access to what when it comes to using company software, performing CRM-related tasks, and accessing sensitive company records.