Corporations and other businesses should try to eliminate the many ranks and salary grades that classify employees according to their experience and expertise. A ‘flat’ organizational structure is more likely to encourage collegiality and cooperation among employees.
Discuss the extent to which you agree or disagree with the opinion stated above. Support your view with reasons and/or examples from your own experience, observations, or reading.
Introducing a flat organizational structure in corporations and other businesses may not be the right option for the development of not only the company but also the world. It needs further analysis before coming to a conclusion that flat structure can only encourage collegiality and cooperation among employees.
Firstly, ranks and salary grades encourage people to work hard and be more innovative and creative in improving the areas on which they work on. It encourages people for a fair competition where everyone tries to outdo themselves every day, unleashing a new energy at their workplaces. The same notion can also be extended to a team of people where they try to outsmart other teams. Eventually, it leads to a healthy and competitive business environment where achievements are well recognized and awarded, enhancing the quality of the products of the corporations.
Secondly, ranks and salary grades gives a clear picture of one’s achievements and responsibilities. Its a known fact that people love to project themselves and be in a limelight. Ranks and salary grades help individuals and teams achieve such a status within an organization with their sheer projection of capabilities. For example, Infosys is projected as a well known company due to its strong ethical business culture followed by its top level management led by its founder, Narayana Murthy.
Lastly, experience and expertise give people, the chance to lead the organization in their specific field of expertise, in future. It projects the future leaders for the corporations and businesses. It clearly shows the fat from the milk who can lead the organization through its tough time with his/her leadership. Imagine a company whose CEO dies suddenly and it cannot find a suitable person to replace him within the company. Anyone replacing him CEO post from outside, usually, takes time to understand the work culture and environment of the new company, before he can become a responsible CEO.
Hence, it is necessary that corporations should continue to encourage ranks and salary grades based on expertise and experience instead of promoting a flat structure. At the same time, corporations should ensure that everyone gets a fair share to showcase their talents and innovations, necessary for the development of the new and better products for the businesses, with its policies and guidelines.