"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.
My Response
For any organization, the key to success is its ability to manage its Human capital, the way it motivates its employees and handles team dynamics. I disagree with the idea of a flat pay structure to encourage congeniality and cooperation among employees.
In my opinion, a flat structure will present serious problems to any organization. Firstly, it restricts the growth opportunities for employees which are a key factor a person looks when he/she decides to join a firm. Every person aspires to grow and move up the organizational ladder. A flat structure does go against this human psychology and would stop employees to think about the long term association with the company.
Secondly a flat structure would demotivate a lot of good performers because such structure restricts differentiations and rewards on the basis of the performance. There is a greater likelihood that such a structure can lead to a substantial reduction in the productivity of the employees. To cite an example, many PSUs in developing nations are suffering from the same issue, where a flat structure is deterrence to Excellence.
Moreover, as organization grows big and complexities of running the business grow, it becomes inevitable to have multiple layers of management and hierarchies. Hence, in long run, the transition from a flat to hierarchical structure is almost sure to happen.
In sum, a flat structure do have merits of simplicity and transparency but, in my opinion, its shortcomings outweigh the advantages. To promote efficiency and excellence, a hierarchical structure serves better.
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.
My Response
For any organization, the key to success is its ability to manage its Human capital, the way it motivates its employees and handles team dynamics. I disagree with the idea of a flat pay structure to encourage congeniality and cooperation among employees.
In my opinion, a flat structure will present serious problems to any organization. Firstly, it restricts the growth opportunities for employees which are a key factor a person looks when he/she decides to join a firm. Every person aspires to grow and move up the organizational ladder. A flat structure does go against this human psychology and would stop employees to think about the long term association with the company.
Secondly a flat structure would demotivate a lot of good performers because such structure restricts differentiations and rewards on the basis of the performance. There is a greater likelihood that such a structure can lead to a substantial reduction in the productivity of the employees. To cite an example, many PSUs in developing nations are suffering from the same issue, where a flat structure is deterrence to Excellence.
Moreover, as organization grows big and complexities of running the business grow, it becomes inevitable to have multiple layers of management and hierarchies. Hence, in long run, the transition from a flat to hierarchical structure is almost sure to happen.
In sum, a flat structure do have merits of simplicity and transparency but, in my opinion, its shortcomings outweigh the advantages. To promote efficiency and excellence, a hierarchical structure serves better.
