"Corporations and other businesses should try to eliminate the many ranks and salary grades that classify employees according to ther experience and expertise. A 'flat' organizational structure is more likely to encourage collegiality and cooperation among employees"
Management experts all over the world will agree that one of the most discussed issues is how to structure the business so as to encourage collegiality and coorporation among the employees. Employees form the backbone of any organisation and it is only by making them happy can a company derive the maximum output from them.
The main question that needs to be answered is what is it that drives a person to give his best. Everyone has motivation levels which are quite different. But organisations that treats its employees so that they feel rewarded for the level of work that they have done over the years and acknowledge the contributions they have made are the ones that get the most out of their employees.
Growth is essential to any organisation and for that, it is necessary to move the experienced people up the ladder, give them better pays and benefits for the work they have done so far.
This is the reason behind appraisals and promotions. It is not possible to manage and delegate tasks unless there is a clearly defined structure in place. Pay packets form a materialistic way of motivating people to achieve more.
Take the case of Wal-Mart. The company has so many levels of positions, starting from the shop assistants to department managers to store managers and so on. Sam Walton made it a point to structure the benefits package in such a way that an employee who stayed on at Wal-Mart ultimately reaped the benefits of loyalty.
Much as it would seem that a 'flat' organization would promote cooperation, that is not necessarily true.