GMAT Essays (AWA)

Q.“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.

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In modern corporate environment its essential to maintain the organizational structure and team work for overall success. I feel, inorder to maintain such distinction and proper division of labour, its essential to maintain ranks and salary grades that classify employees within the organization.


First of all, to support my opinion, let's consider the competitive environment where these modern industries have to cope up with. It demands highly efficient employees with high calibre and dedication to the organization. For example, if the employees feel that they are not well compensated in comparison to their role, they tend to work less efficiently or will move out to other companies. These conditions will severly affect the organization and would blunt their competitive edge in the market.

Secondly, carrying over from above point, employee productivity will be a serious concern if proper ranks or divisions are not provisioned. Companies wont be able to identify the employees who are more productive and thus in longer term make the organization inefficient. Proper rating systems cant be enabled until unless there is a definite role and rank.

Moreover, few people believe that eliminating such ranks or salary grades will reduce the friction between employees. But i feel, the above differentiation enables healthy competition among the employees which will benefit the organization and in its operations. Furthermore, these differential structure has been enabled across many successful corporations and the process is matured.

In conclusion,i feel its not helpful for corporations to have a flat organizational structure. Its essential to maintain a proper classification across the organization and its employees which will benefit the business in longer term.