In recent years, there has been a movement toward flatter organizations. The shift, aimed at greater equality, is based on the idea that each person understands his or her responsibilities and will act accordingly.
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We’re all adults, right? Why not remove hierarchy, eliminate chains of command, and let the ship sail unencumbered?
What sounds good in theory is sometimes difficult to put into practice.
Case in Point
An article in The Atlantic explores efforts by online retailer Zappos to eliminate hierarchy—meaning no more titles and no more bosses.
The initial result? Confusion.
Without titles, it was difficult to know what to pay people. Meanwhile, some employees wanted a boss to consult when making difficult decisions.
The end result was that Zappos’ employee turnover rate in 2015, after the changes were implemented, was 30 percent, 10 percentage points higher than its typical rate.
Why Eliminate Hierarchy
Proponents of flat organizations say that such organizations:
- Encourage collaboration
- Spark creativity
- Empower employees
- Allow for faster decision-making
But it turns out most employees actually prefer hierarchy.
What Hierarchy Provides
Indeed, research from Stanford University finds employees value the predictability a pecking order provides.
The study, conducted by Larissa Z. Tiedens, a professor at Stanford Graduate School of Business and Emily M. Zitek, an assistant professor at Cornell University’s Industrial and Labor Relations School, and published in the Journal of Personality and Social Psychology, consists of five separate experiments designed to provide insight into hierarchies for the purpose of helping organizations be more mindful about how they structure themselves.
The study concludes that hierarchies are easier for people to grasp; that is, they are predictable.
In an interview for Stanford Business, Tiedens points out that the idea of equality need not be abandoned; however, some type of structure is necessary.
“Just getting rid of the organizational chart can create problems,” Tiedens says. “People often think equality is a natural state that doesn’t have to be managed, but it does.”
What Job Candidates Want
Employees value an organized workplace, and organizational charts. What’s more, hierarchy identifies a possible career path.
And, as surveys show, today’s job candidates want ongoing career opportunities.
When organizational structure is unclear, or lacking, it can be difficult for recruiters and hiring managers to provide information about how career growth will take place.
Besides, every ship needs a captain—and before a new crew member comes onboard, he or she will likely want to know who is in charge.
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Paula Santonocito, Contributing Editor for Recruiting Daily Advisor, is a business journalist specializing in employment issues. She is the author of more than 1,000 articles on a wide range of human resource and career topics, with an emphasis on recruiting and hiring. Her articles have been featured in many global and domestic publications and information outlets, referenced in academic and legal publications as well as books, and translated into several languages. |