Picture a workplace where the CEO is as accessible as your desk neighbor. Where sharing an idea is not a three-step ordeal. This is not a fantasy. It is a tangible business approach. We refer to this as hierarchy flattening.
Flattening of hierarchies is taking over offices in the United States. Businesses need to accelerate their rate of innovation. The old ways of doing things are far too slow to accommodate the demands of the present. Where traditional systems resemble tall pyramids, flat systems are wide pancakes.
This guide will explain what this shift means for you. We will analyze the reasons behind it and the impact on your day-to-day activities.
The Old Way vs The New Way
The transition from the past to the present shows how hierarchies have flattened.
A traditional company is like an old army unit. At the top of the hierarchy is a general. Below that, there is a colonel, then a major, captain, and lieutenant. At the bottom, there are the soldiers. The soldiers do the work but have to get permission and are given orders from the hierarchy above them. Everything flows from top to bottom, and the messaging is very time-consuming.
This was a very tall hierarchy. It was very effective in the 1900s. Factories required rigid structures, but that is no longer the case.
The same example now with a modern tech startup. The founder is in an open space with the interns. Everyone collaborates to share and develop their ideas. Decisions can be made in minutes, not weeks.
The removal of hierarchies means that the inner layers of middle management are removed. It eliminates those people who only filter and transfer the messages. The people who actually do the work are given the authority.
Why Companies Are Flattening Hierarchies
Large corporations are getting bigger and bigger, making it hard for them to change. But what’s making them do it now?
Speed is Everything
In this age of instant information, people’s patience has shortened to a few seconds. If employees need to walk up the corporate ladder to get an answer, it will take too long. They can provide the answer immediately if they already have it.
Saving Money
Mid-level managers are one of the corporate world’s biggest expenses. Because there’s no need for as many managers, more money can be spent elsewhere, like on better tools and even higher salaries for employees.
Better Ideas
In a company with a long, vertical structure, ideas are bottlenecked to a few senior employees. Junior employees are rarely encouraged to share their ideas in these structures. In a flat structure, every employee is encouraged to share their ideas.
The Hidden Benefits of a Flat Workplace
Speed and money are evident benefits of a level organization. However, there are additional benefits of this approach, of which most articles do not speak. Here are some of those benefits.
- Ownership Mentality: Having a boss is demotivating, as you feel like you are under constant supervision. When the boss is absent, employees have to take on leadership roles. They take ownership of the task at hand, and the result will be one to be proud of.
This shift in responsibility also reshapes what constitutes a great leader in organizations that rely less on hierarchy and more on trust. - True Transparency: A secretive type of leadership creates distrust. Having an open leadership with visible structures helps disseminate information. Trust is built with transparency.
- Skill Growth: In a normal job, you have one function and wait for a promotion to do something else. In a level organization, there are no boundaries. You might do marketing one day and be a product designer the next. You learn new skills much faster.
The Challenges of Removing Bosses
This kind of change is not always easy. We should be frank about the potential issues this could cause.
Who makes the final call?
Sometimes a group will take too long to come to an agreement. In a tall hierarchy, a manager makes the decision. In a flat hierarchy, you could be faced with never-ending discussions.
This reality forces companies to rethink how to manage managers when authority is distributed instead of centralized.
Career Paths look different
In the past, you had a clear idea of your career path. You moved from being a junior manager to a senior manager. In a flat organization, the hierarchy disappears. You have to progress by acquiring new knowledge, not just receiving a position.
How Does This Affect You?
You could be wondering how this affects your work future.
If you’re an employee, prepare for some more autonomy and more responsibility. You will not have upper management to go to over your head. Everyone can see your contributions and your results. This is a big positive for those who go above and beyond. For those who prefer to sit back and take it easy, this is a nightmare.
As for you, manager, your function is also changing more than most. You are no longer a general. You are a coach. As managers shift from authority figures to coaches, business advisory services often help organizations redesign leadership roles and accountability systems.
You are not meant to give direction and orders but rather to empower your team to be successful. You eliminate barriers, furnish the right tools, and support the team.
Is Total Flattening Possible?
Some companies try to have no bosses at all. This is even called a “holocracy.” It is extremely difficult and very rare to accomplish. One of the most famous examples includes Zappos. They attempted to try.
The majority of companies want to find a happy medium. They don’t want any bosses at all, they just want a reduction in bosses and a flat hierarchy where there are fewer bosses. They keep the structure and just remove the unnecessary pieces.
Signs a Company Has a Flat Structure
During an interview, you may wonder how to tell if a company follows a flat structure. Look out for the following signs.
- Open Door Policy: Executives are approachable, and they don’t hide in corner offices.
- Broad Job Descriptions: Roles can interchangeably flex and focus on goals instead of a specific list of duties.
- Fast Decisions: The company is not afraid to experience a minor failure.
- Team Power: Teams can be in full control of their schedules and work. They don’t need to wait for a command.
The Future of Work Structures
The trend toward the flattening of hierarchies isn’t a fad. Hierarchical structures are on the way out thanks to technology. We can communicate instantaneously via Slack and Zoom and don’t need a manager to relay messages.
Artificial intelligence will increase the flattening of hierarchies. AI will take over tasks like scheduling and report writing that middle managers do. This will free up employees from administrative tasks, allowing for more creative contributions.
Companies that resist the change will struggle to keep up. Inflexibility will cost them talent, who will leave for more adaptable competitors. The pyramid is collapsing. The network is its successor.
