January - February 2002

 

 

 


OpEd Corner

Would You Prefer Your Organization "Flat"?

by Terrance Malkinson

In recent times, many organizations have moved to restructure themselves into flat organizations. In doing so, they have eliminated hierarchical levels. Companies make this change for a number of reasons, including lower costs and the almost universal use of information technology.

But is a flat organizational structure better than a hierarchical one in terms of business productivity and worker effectiveness?

In general, the hierarchical structure allows for work to be categorized; provides a predictable career and compensation ladder; establishes clear accountability; and values experience. On the other hand, it is expensive, time-consuming and resistant to change. It promotes self-importance; status; and "buck-passing;" and it tends to be associated with the term "bureaucracy" and all of it connotations.

Flat organization structures promote ownership of tasks; eliminate redundancy; are more responsive to change; facilitate creativity and innovation; put people closer — and therefore make them more responsive — to customers; streamline processes; and empower employees. On the other hand, flat structures provide fewer opportunities for advancement; put more responsibility and stress upon individuals; require skilled, experienced employees; and reduce independent checks, balances, and controls.

 

Reader Poll:
What Do You Think?


In today's technical work environment, is a flat organizational structure an effective one? Why or why not? 

Do flat structures tend to favor the organizations themselves or their people? Why?

Please send your thoughts, ideas and suggestions to todaysengineer@ieee.org. Please be sure to include your name, home city and state, and IEEE membership status (if applicable).

 


Terrance Malkinson is a proposal manager/documentation specialist with GE Capital IT Solutions Inc.

 

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