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Corporations and other businesses should try- Review Please [#permalink]
26 Apr 2012, 20:04
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Analysis of Issue
“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.”
The issue of whether or not corporations and other business should have flat organizational structure or hierarchical structure is a controversial one. Some corporations classifies its employees into ranks and salary grades base on their experiences and expertise and others simply have flat organizational structure. Though there are few merits in the flat organizational structure, they are not out-weighed over the merits of hierarchical structure. In this discussion I shall present my arguments in favoring the grading system of employees based on their experience and expertise.
The arguments states that flat organizational structure is more likely to encourage collegiality and cooperation among employees, I strongly refute this statement.
Firstly, As the famous adage goes too many cooks spoils cook, too many authoritative decisions in a project can lead to chaos and project failure. I personally worked in a flat organization structure company, It was hard to gain team consensus in most of the project decisions because each of them often present their own preferences and thus resulted in more delay in the project implementation. This would have been easily avoided if more authoritative power was given to more experienced and expert. Employees often lack a specific boss to report to, which creates confusion and possible power struggles among management. Thus, Collegiality in flat organizational structure will lead to undesired consequences as presented.
Secondly, In Hierarchical organizational structure, A good leader will motivate and encourage cooperation among team members. I have personally worked under great team leaders, who has motivated team members and ensured friendly environment. On contrary, in flat organizational structure coperation among employees is uncertain. Cooperation among teamates mainly depends upon individual's attitude. In addition, flat organizations tend to produce a lot of generalists but no specialists. The specific job function of employees may not be clear. On contrary, in hierarchical organization the job function of employees is based on their skill set and expertise.
Finally, Larger organizations struggle to adapt the flat structure, as many people may report to single or fewer persons and results in inefficient management. Whereas in hierarchical organization structure the company divides into smaller, more manageable units and thus results in efficient management. In addition, opportunities for promotion motivate employees to perform well.
In sum, Flat organizational structure is unfair to the hard working, great skilled and experienced people who plays significant role in company growth and success. In fact, this kind of structure demoralizes talented employees. I conclude ranks and salary grades are required in corporations to motivate the employees to work hard and deliver good work, and to reward those people, who contribute significantly for company growth and success.