Wireless sensor networks (WSN) are one of the significant technologies due to their diverse applications such as health care monitoring, smart phones, military, disaster management, and other surveillance systems. Sensor nodes are usually deployed in large number that work independently in unattended harsh environments. Due to constraint resources, typically the scarce battery power, these wireless nodes are grouped into clusters for energy efficient communication. In clustering hierarchical schemes have achieved great interest for minimizing energy consumption. Hierarchical schemes are generally categorized as cluster-based and grid-based approaches. In cluster-based approaches, nodes are grouped into clusters, where a resourceful sensor node is nominated as a cluster head (CH) while in grid-based approach the network is divided into confined virtual grids usually performed by the base station. This paper highlights and discusses the design challenges for cluster-based schemes, the important cluster formation parameters, and classification of hierarchical clustering protocols. Moreover, existing cluster-based and grid-based techniques are evaluated by considering certain parameters to help users in selecting appropriate technique. Furthermore, a detailed summary of these protocols is presented with their advantages, disadvantages, and applicability in particular cases.