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Experts: Please rate AOI [#permalink]
04 Oct 2010, 02:14
Analysis of an Issue: Topic: Hierarchical vs flat Organisational structure
Organisations following a hierarchical structure have been equally successfully as those following a flat structure. However, in my view leadership and management are very important business directives, hence hierarchical structure within an organisations is better for both the employee and the organisation.
The main reason for my support towards a hierarchical structure within a business/organisation is the motivation that such a structure brings within any environment. It motivates the employees to perform better, which in turn would enable them to compete for a higher position within the organisation. For example, if an employee is interested in becoming a manager at his organisation, he has to perform well at a team member level in order top gain a promotion to a higher level.
Another reason why I prefer a hierarchical structure is because in order to successfully run a team, experienced team leaders or managers are needed. Employees working in a team or organisation need direction and motivation, and these can be provided by a leader. A team leader or manager steers the teams growth and performance and is an absolute essential element of any successfully team.
Some people are born leaders. Others are technically very sound but very poor at managing people. Hence a team/organisation following a hierarchical structure allows a mix of variety of people with different skills, expertise and experiences. For instance, a brilliant software programmer who is good at writing code might not be a very efficient manger.
Organisations with a flat structure do have a good mix of talented employees who can work efficiently without marking hierarchical boundaries. However, in today's rapidly changing product and project environments, organisations do need leaders and managers to steer growth and development.