Companies, particularly in the tech sector, often champion equality and flat hierarchies. Yet, in practice, they tend to follow traditional hierarchical structures. Google, for instance, maintains a flat structure in theory but in reality, it follows a conventional hierarchy.
This contradiction often arises due to the complexity of managing large teams. While flat structures can foster creativity and independence, they may also lead to confusion and lack of direction. Hierarchies, on the other hand, provide clear roles and responsibilities but can stifle innovation and flexibility.
In an attempt to strike a balance, some companies are experimenting with ‘holacracy.’ This system, adopted by companies like Zappos, eliminates job titles and managers, instead assigning employees to various roles in self-governing teams.
However, holacracy has its own challenges. It requires a significant cultural shift, and its complex rules can be daunting. Furthermore, it’s unclear if it can scale to larger organisations.
Despite these challenges, the pursuit of the ideal organisational structure continues. It is a delicate balancing act between fostering innovation and maintaining order.
Go to source article: http://www.nytimes.com/2014/06/22/business/espousing-equality-but-embracing-a-hierarchy.html?_r=0