“Corporations and other businesses should try to eliminate the many ranks and salary grades that classify employees according to their experience and expertise. A ‘flat’ organizational structure is more likely to encourage collegiality and cooperation among employees.”
Discuss the extent to which you agree or disagree with the opinion stated above. Support your views with reasons and/or examples from your own experience, observations, or reading.
In today’s global marketplace
, companies are constantly looking for ways to improve their competitiveness, reduce costs and allow entrepreneurial ideas move the company forward. One available method is through examining the simple structure of the organizational chart of the firm, as the author suggests. Modern day corporations can be too slow to innovate, to slow to adjust to marketplace
and too complex to compete in a global marketplace
, with streamlined and efficient competition fostering around the world. As the author suggests, corporations and other businesses should act now to restructure their companies with a flattened organizational structure that thrives on cooperation and coordination.
First, to understand the reason that a change is crucial it is necessary to uncover the flaws in the current system. The typical current corporation is built on layers of managers, all overseeing a layer of managers below them but not really adding any value to the corporation. At the very peak of the organization, the executives outline a strategy; at the bottom of the organization chart the employees perform most of the company’s labor; in the middle, management adds little value.
Additionally, when employees must receive direction from a superior, they lose the motivation and the instinct to generate profit friendly ideas. Often, front line workers can recognize foolish policies and procedures, such as duplicated processes or wasteful spending. Often, because they have no incentive, they choose not to voice their opinions, leaving these decisions to management, who may never recognize the problem. Flattening the organization and given the average employee a greater stake and say in strategic issuers would help the organization flush out business enhancing solutions from all areas of the firm.
Opponents of this viewpoint would likely point out that the executives of the business cannot be bothered with day to day trivial issues, hence the reason for layers of management to filter information up the corporate ladder. This is a valid point, however the extent of management personnel required to fulfill the filtering process is minimal. Perhaps as many as half of the management layers and personnel in the average corporation are expendable, as are many of the tasks they perform.
In conclusion, firms should recognize the high level of stifled potential hiding in their lower ranks, and implement drastic changes in how they operate to help unleash that potential. With global competition and pricing margins continually compressing, corporations and organizations should not pass an opportunity to enhance their competitiveness.