Final answer:
An organization's hierarchy of authority shows the chain of command, communication networks, and formal communication channels.
Step-by-step explanation:
An organization's vertical hierarchy of authority demonstrates several aspects of its bureaucratic structure. Firstly, it reflects the organization's chain of command, where command flows from higher-level positions to lower-level roles, ensuring that commands are followed and accountability is maintained. Secondly, it denotes the official communication network within the organization, highlighting the channels through which official information is supposed to travel. Lastly, it implicitly delineates who talks to whom, indicating the expected formal channels of communication.
For example, in a retail company like Walmart, an employee receives tasks from their shift manager. This shift manager reports to the store manager, who in turn is accountable to the regional manager. The sequence continues up to the CEO and then to the board members and stockholders. Each level of the hierarchy has a specific role to fulfill, following the division of labor and responsibilities defined by the bureaucracy.