Flat vs. Tall Organizational Structure

There was an article in Forbes that argues for the elimination of management in the new working society. The main premise is that management increases the overhead cost to the company, but may not be doing much to increase the bottom line. He argues for a flatter organizational structure with more access to higher level positions, more decision making on the front lines and a decrease in bureaucracy through the workplace hierarchy.

As a student of management, and having a lot of interest in management and organizational effectiveness, I can't help but be intrigued. There is definitely something to be said for a decrease in bureaucracy to improve communication and effectiveness. In larger companies, it can be very challenging to make an adjustment to what is happening on the front lines when numerous levels need to be consulted. It is also challenging to work across departments; each department has their specific task and communication across the departments poses a problem.

Each company and industry needs to find what is the best model for them. It may seem appealing at first glance to eliminate the management from the equation, but that leaves a gap in who is overseeing the process, offering administration support and evaluating the effectiveness of decisions. Typically, that person is the manager/director of the department who looks at the larger picture, not only of the department, but the company as a whole. That is not to say that all mangers are effective at their job. Far from it, but I am advocating for having the right person in the job. Someone who understands the department, the needs of the individuals in the department and who has the ability to effectively objectify the decisions in the department.

On the other hand, it is equally important that the manager does not stand as road block to their employees. If there is a problem it should be addressed immediately and access should be provided to higher levels to expedite the decision making process. Directors of different departments also need to be open to those not under their direct supervision. Most companies need to communicate across departments to fully understand how decisions impact the company. If a front line employee notices that a change in process may save money, that needs to be championed through the company, quickly.

Who is in charge of training new staff, performing inventory control, overseeing the budget or evaluating the decisions? If the management is eliminated, someone will have to pick up these tasks, or a group of someone's. A flat structure will probably continue to gain traction since it can improve effectiveness in process based companies, and smaller ones. For the larger institutions, it may be harder, but then again, they should also look hard at who is in managerial roles and how effective they are at doing their job.

Effective employees are more productive and every company achieves that differently. Find the structure that offers the best balance of ease of communication and effective employee support.

http://www.forbes.com/sites/jacobmorgan/2015/03/16/get-rid-managers/2/