Organizational Hierarchy

Chain of Command
A system outlining the hierarchy of authority and decision-making in organizations, where instructions flow downward and accountability flows upward.
Pecking Order
Pecking Order refers to a hierarchy or rank order within an organization, originally derived from the behavior of chickens where dominance is established through a series of physical interactions.
Peter Principle
The Peter Principle is a management theory that observes individuals tend to rise in every hierarchy through promotion until they reach a level at which they are no longer competent. This theory was formulated by Dr. Lawrence J. Peter and Raymond Hull in the book 'The Peter Principle: Why Things Always Go Wrong.'
Vertical Promotion
Vertical promotion refers to the advancement or upgrading of management or supervisory responsibilities within an organization, often accompanied by an increase in compensation. For example, an individual receiving a promotion from a department manager to a vice president not only gains greater responsibilities but also receives higher remuneration.

Accounting Terms Lexicon

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