It is currently 26 Jun 2017, 03:45


GMAT Club Daily Prep

Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

for You

we will pick new questions that match your level based on your Timer History

Your Progress

every week, we’ll send you an estimated GMAT score based on your performance


we will pick new questions that match your level based on your Timer History

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.


Request Expert Reply

Confirm Cancel

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

Corporations and other businesses should try- Review Please

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
Joined: 24 May 2012
Posts: 1
Corporations and other businesses should try- Review Please [#permalink]

Show Tags

New post 24 May 2012, 17:58
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 defferentiation, ranking and paying employees based on experience and expertise, in the corporate and business world is controversial. On the one hand, a "flat" organization promises uniform responsibility and encourages employees to work with co-operation among induviduals and groups.On the other hand, it posses many critical draw backs that would undermind the performance of the organizations. In my final analysis, I believe that it is not only necessary but also very important to differentiate people based on their experience and expertise.

The first reason for by belief is that differentiation encourages performance in an organization at induvidual and group level. Recognition and reward for the expertise and the performace is considered a vitail gain for most of the induviduals. For example, the surveys conducted by several employment agencies to measure the employee satisfaction clearly indicates that employees who gets the perks for their special achievement are most satisfied employees and their by they are willing to be more loyal to the organization.

Another important financial reason where the "flat" organization will cause serious damage is that in order to maintain an effective "flat" organization, the employer should maintain a balanced payment system throught the organization, which will cause more expenses in terms of employee salary and benefits. Differentiation would help the organization to determine which percentage of the employees can be paid less and which can be paid more based on the performance and their by reduce the cost of wages.

Moreover, flat organization causes confusion about the responsibility of the employees. For example, it lacks the delegation of work based on the expertise and experience level. A manager who knows the specific skills of the team members would know who to delegate what task and what area of work in order to carry out the projects within the scope of the budget and expected quality levels.

The issue above also claims that a "flat organization" would cause cooperation among employees. This argument is flawed that it exactly says the opposite of the truth. Flat organizations are much more likely to cause non coperation among employees than those which are differentiated based on the experience and expertise.Clearly, an experienced employee who perfors much better than a less experienced employee, is less likely to cooperate with the other. He will be dissatisfied and discouraged as he gains no better than the other employee who did not meet his result.
Result oriented employees would see rewards and recognition as their key earnings for the work well done. Absence of any of this will cause poor morale and hence non coperation.

For all this reasons, I believe that the corporations and businesses should not eliminate the ranks and salary grades based on the experience and expertise level. After all, this differentiation would also help the organization in removing the poor performing employees as they will naturally be paid and rewarded less and hence more likely to find another job causing a more healthy employee strength for the organization.
Corporations and other businesses should try- Review Please   [#permalink] 24 May 2012, 17:58
    Similar topics Author Replies Last post
AWA - Review Request - Corporations should look to the city of Helios herein 0 27 Nov 2015, 08:37
Review please? tkevink 0 05 Mar 2015, 14:36
Please my second essay.. “Corporations should look to the .. iwillcrackgmat 1 30 Jul 2012, 10:30
Employees should expect no privacy while on- Review Please mailtoashish17 1 22 May 2012, 10:06
Corporations and other businesses should try- Review Please jaggu 0 26 Apr 2012, 20:04
Display posts from previous: Sort by

Corporations and other businesses should try- Review Please

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  

GMAT Club MBA Forum Home| About| Terms and Conditions| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group and phpBB SEO

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.