Yo boss, how is it going?

Organization, People

title: Yo boss, how is it going? created_at: 2021-02-19T14:52:16.823Z updated_at: 2021-02-19T14:52:16.823Z tldr: why is a flat hierarchy better is_published: 1 star: false category: Organization, People share_type: add

Most organizations have layers of management that follow a specific hierarchy. On average, these hierarchical organizations have six layers of management. But in a flatter structure, you remove several of those chains of command, so fewer layers separate the staff and the leadership team.

In a flatter structure, all employees are on a level playing field with shared authority and decision-making powers. These are also referred to as "self-managed" teams, as employees decide what they work on and when.

No Politics and clear communications

Everyone in the organization is on the same goal, to improve the product. If you need something you need to ask, there is no other way. There is nothing like your manager coming in and asking if you need something, you need you ask and get it done.

Ownership and Autonomy of Work

Flatter hierarchies boost autonomy, which is a key factor in employee satisfaction. You are more involved in decision-making as there are fewer managers to defer to. You may also be more likely to engage in job crafting to suit the changing needs, of the organization which can lead to greater autonomy as employees develop new areas of focus.

Faster to execution

When you own the product you are more likely to get things finished without supervision. There are no permissions needed, if you see something broken, you are more likely to fix it. Similar to the Toyota Production system if a problem arises anywhere, its perfectly ok to halt the production system and fix the problem for a better quality.

Informal innovations

By its nature, innovation is not a ‘business as usual’ process, so innovative ideas often require managerial sign-off. This may involve time-consuming processes like creating a business case to prove the commercial value. This means that innovation takes longer in traditional hierarchies, which prioritize stability and controlled growth. In flatter hierarchies, innovative decisions can be taken as easily and quickly as decisions classified as ‘business as usual.’ This is often why start-ups and disruptive companies adopt flatter structures. Because high growth and innovation are the main aims, rather than stability, cost-savings, and a focus on the bottom line.

Further reading

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