Data Structure
Networking
RDBMS
Operating System
Java
MS Excel
iOS
HTML
CSS
Android
Python
C Programming
C++
C#
MongoDB
MySQL
Javascript
PHP
Physics
Chemistry
Biology
Mathematics
English
Economics
Psychology
Social Studies
Fashion Studies
Legal Studies
- Selected Reading
- UPSC IAS Exams Notes
- Developer's Best Practices
- Questions and Answers
- Effective Resume Writing
- HR Interview Questions
- Computer Glossary
- Who is Who
Why are Flatter and More Agile Organization Structures Preferred?
Gone are the days when firms used to believe that supervision, monitoring, and disciplining your employees would only lead to productivity. We live in an era of out-of-the-box thinking and creative solutions to dynamic problems. Employees want to work with free will. They prefer coaching as a style of management. If a manager or supervisor is going to be on their tail dictating every move for them, they will soon leave the organization. We are not the industrial revolution or a bygone technological era. For us, machines do all the repetitive work, and we want someone who can use their brain for the company. Now let us understand how a flatter and more agile organizational structure helps in developing a culture where employees can work freely and provide the company with their brain.
Flatter Structure Concept
Earlier, we used to have junior managers, managers, senior managers, supervisors, supervisors of supervisors, team leaders, and other such designations. The main work of these people was to monitor the employees' work. If an employee had any grievance or creative solution for his or her work or for the working of the organization, the idea would have to pass through several levels to actually find its destination. This process with managers and leaders was time-consuming and degrading for creative minds. For them, the company was nothing more than a corrupt and bureaucratic government.
Hence, we were introduced to the concept of flatter and more agile organizational structures. Here there were employees and one level of management below the top authorities. Employees were responsible for their actions and could seek help from management whenever required. In more clear terms, employees were free to even connect with higher authorities like the Chief Technology Officer (CTO), the Chief Executive Officer (CEO), the Chief Financial Officer (CFO), and others of the company regarding their work, ideas, and suggestions, and they could always seek help and guidance from the management sitting in front of them. There were no more junior managers or supervisors.
The qualities that are required in individuals and teams to make the flatter organizational structure a success −
A flatter organizational structure provides a lot of autonomy to individuals, and hence they should possess the below-mentioned qualities to make working a delightful experience for them as well as the company.
They must take ownership of their responsibilities and work.
Accountability for their actions.
Transparency among the team members, managers, and other functional departments.
Coordination among the other functional teams.
Respect for one another and one's work.
Benefits of Having Flatter and more Agile Organizational Structures
Decisions are Made Quickly − Since the layer of managers, or the hierarchy, has been reduced, it has become easier for the company to take decisions. The ground-level employees can set the ball rolling and respond to the changed needs of the consumer within a day or sometimes hours. There is no slacking off on work or responsibilities.
Can Better Serve Customers − With the removal of the hierarchy, customer support or ground-level employees can reach out to authorities with customer concerns or customization needs, and they can be resolved quickly. The customer experience enhances, and they become loyal to the brand and the company. We also see that the public image of the company is enhanced by this initiative.
Communication Becomes Easy − There is no loss of data or crucial information or exaggeration of facts by the layers in between. Employees’ concerns can be addressed as well, as it becomes easier for them to seek solutions and approvals in time. Top authorities even get a chance to take a peek at the daily work other than just the PowerPoint presentations at the end of every quarter.
Increased Productivity − The employees are more productive in flat structures than in traditional hierarchies. They have autonomy and are responsible for their actions. It is easier for them to get noticed, and at the same time, they get an appreciation for their work. For them, work is now play, and they make sure to play hard.
Innovation and Creative Solutions − We see that our employees have become immune to the dynamic and VUCA (volatile, uncertain, complex, and ambiguous) world that we live in because of our flatter structures. Employees walk the extra mile and are always coming up with ideas to serve the customers better and make the process more efficient. This change is only visible in the flat structure because of the responsibility and autonomy given to them. They do not hide under covers now.
Alignment of Values and Goals − Because employees in a flat structure can see how their work contributes to the business and its growth, it is easier for them to have a shared purpose and ensure that their values and principles align. This ensures that there is job satisfaction and that the internal conflict among the employees is also resolved.
Lower Operational Cost − The company would not have to hire managers in between, and with less time spent in decision-making, we see a lot of cost reduction for the company.
The Decreased Attrition rate, Increased job Satisfaction, and more loyal Employees. With flatter structures, companies ensure all the given points. They make the employees ready for their wartime duty.
How can a Flatter and more Agile Organizational Structure go Wrong?
Confusion Among the Employees − Employees joining the organization may feel lost as there is no designated person from whom they can seek help. There can also be cases when an employee is being deployed in multiple projects simultaneously and hence would have to report to or update different teams because, by laying down one anchor point, employees may lose track and become highly dissatisfied.
Employees Might shy Away − Not all employees have the courage to approach higher-ups on a regular basis, and they may sometimes feel annoyed for doing so. They may not always act confident and find it difficult to reach out. Flatter structures are not successful with all types of personality traits.
Power Struggle − Employees may struggle to take charge of the team because there is no formal manager or leader. There can be conflict and office politics. This will create negative situations for the employees and might hamper their productivity to a great extent.
Lack of Opportunities − Employees seeking managerial roles or exploring people management apart from their individual contributions may find a lack of opportunities in flatter structures. They may not see career growth for themselves.
Companies with Flatter Structures in Today’s Dynamic Business Environment
Cisco
Nike
Whirlpool
Google
Amazon
Square Space
Facebook
Pandora
Learning Mate
Valve and others.
Flatter organizational structures are the trend for various reasons, and we were able to see how flatter organizational structures may also seem like a threat to the company. If one is weighing the pros and cons of flatter and more agile organizational structures, we see that the benefits outweigh the drawbacks.
Companies can try to provide buddies to the new hires to avoid confusion and take some other significant steps to ensure that they can easily apply the flatter structure in their business environment.
224 Views
