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AWA Issue Essay - Please Rate

Expert replies
by fornaxe » Sat Feb 11, 2012 12:53 pm
"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.


The notion that companies and businesses ought to move towards a "flat" or basic employee organizational structure as opposed to a rank or salary grade based system is an important one to consider and evaluate. On one side of the coin, having salary grades will allow for proper classification of specific employees based on their experience and corresponding expertise within the company. But the other counter notion is that this will foster an environment which negatively impacts cooperation. In the paragraphs that follow, I shall present my arguments against the opinion presented in the passage that businesses should eliminate the rank based structure by presenting arguments for and refuting the arguments against.

Specifically, one important reason for having a salary grade classification of employees is to encourage and reward the experience and expertise gained as one employee progresses within the company. It is only logical for a corporation to ensure that they retain and foster the best talent within their organization by having salary grades reflect a person's capabilities in their respective jobs. If a person with 20 years of experience and immense expertise in a particular subject matter makes the same as a new graduate with minimal experience, it would not be a fair structure.

Furthermore, another reason is that for individuals to progress within a firm, the idea of reaching a specific rank or a salary grade provides an important goal for them to learn and grow in order to reach their potential. If there is no possibility of advancement, such as the case with a "flat" organizational hierarchy, there is no "carrot on a stick" type mentality, so to speak, for individuals to aspire to.

Finally, it is virtually impossible to implement the opinion of the author of this argument. Many organizations, in today's world that has dwindling numbers of highly specialized employable pool, have had to ensure that they have a specific rank and salary based structure to ensure they attract the best and the brightest. How does one take this away from a company and still ensure that the aforementioned attraction is attained? If one company starts with a flat structure, it will inherently put them at a disadvantage to a competitor that has a salary grade system, and hence risk the former company to lose their best and brightest.

In conclusion, the three reasons mentioned above are important in order to consider abolishing the rank based organizational hierarchy. One way for the author to strengthen his argument would be to provide specific examples wherein a company has implemented this policy and shown an increase in co-operation and collegiality (through unbiased employee surveys for example). Since this has not been done, the argument is weakened and does not have any merit for it to be implemented for all corporations.

Thanks, this is my first attempt - just started studying for the AWA today!
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Source: — GMAT Essays (AWA) |

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