Career Development in a Flat Organization
Anyone who has worked for a large company probably knows a lot about corporate hierarchy -- who reports to whom -- and office politics. So-called flat organizations eliminate several layers of corporate hierarchy along with most middle management positions. As a result, flat organizations often need a creative approach to offer career development for their employees.
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Flat Organization Definition
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Many large companies have what is known as a "tall organizational structure". Tall organizational structures are represented by a pyramid. The direction of the company flows down from a small number of directors or supervisors at the very top through several layers of management in a clear chain of command to a large number of lower level workers at the bottom. The philosophy that drives a flat organization is that eliminating rigid procedure and red tape allows organizations to respond better to the needs of their customers and clients, while allowing employees at nearly all levels to operate more effectively.
Broader Work Roles
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One way to advance career development in a flat organization is to allow employees to obtain a larger skills set, allowing employees who demonstrate a high level of competence to expand their roles within the company. Work-related training conducted either on the premises or off site also allows employees to obtain additional skills. Flat organizations often encourage employees to take on projects outside their specific scope of duties or to participate in collaborative projects with other employees in different departments of the company.
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Increased Employee Autonomy
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In a typical tall organization, employees must often wait for clearance from a supervisor or other higher-level manager before proceeding with a specific task. Flat organizations often allow employees to have more latitude in making decisions that affect their own work. As workers advance in a flat organization, the latitude they are allowed to exercise increases. Employees are encouraged to adopt an attitude of ownership; different divisions or departments of the company may reach a point where they operate almost like entrepreneurial ventures.
Enhanced Benefits and Perks
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When vertical promotions are limited, benefits such as paid time off for sabbaticals and tuition reimbursement provide a means of rewarding high-performing employees -- along with increased pay. Such rewards are far from trivial -- as of 2009, fringe benefits accounted for nearly 30 percent of total employee compensation, according to the U.S. Department of Labor. Publicizing the achievements of high achievers in company communications illustrate to other workers what is possible for motivated and engaged workers.
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References
- Business Dictionary: Flat Organization
- Encyclopedia for Business, 2nd Edition: Organizational Chart
- "Principles of Management"; Mason Carpenter et. al.; February 2009
- LearnManagement2.com: Flat Structure Organisation
- "Human Resource Executive Online"; Building a Culture of Employee Development; Mark A. Royal and Rebecca C. Masson; March 2009
- American Express Open Forum; How to Design a Flat Organization; How to Design a Flat Organization; How to Design a Flat Organization; Matthew E. May
- Bankrate.com; The Value of Employer Benefits; Steve Santiago; May 2009
- Second Wind Consultants, Inc.; Is Your Management Format Flat or a Pyramid?; Don Todrin; December 2007
