Organization Levels provide the ability to organize departments into many different reporting views of the organization.
Organization levels are associated to an employee only through the department code. Therefore, if there were a re-organization of the entity structure, the department’s organization levels would be modified. All persons associated with the department will automatically reflect this organization change.
Organizations can be used for divisions, regions, budget levels, etc. Departments “roll up” to organization levels.
For example, an organization divides North America into sales regions based on time zones, so its office in Toronto, Canada is in the 'Eastern Sales Region' from a sales perspective. For marketing purposes though, the organization divides North America into two marketing strategies, a 'U.S. Marketing Strategy' and a 'Canadian Marketing Strategy'; the office in Toronto, Canada, therefore falls under the latter.