Hierarchical versus Flat Management Structures
By Ray Martin

Organizations Characteristics and Incentives

(Hierarchical versus Flat) 

Characteristic

Hierarchical

Flat

Activity level tends to ... be high vary with demand
Activity/results ratio is ... highest lowest
Alternatively called ... scalar, bureaucratic participative, team
Approval required to do ... something nothing
Basis for decisions "perceptions" analysis
Challenge employees by ... accusation questioning
Communication media favors ... meetings, hearings various, listenings
Decision quality? Timeliness? varies/good, slowest varies/good, fastest
Emphasis on trappings considerable minimal
Emphasis when problems arise assigning blame fixing problem
Employee satisfaction tends to be … low high
Employee turnover tends to be … high low
Focus of key people on problems* secondary, irrelevant primary, important
Guidance (direction) provided by … "I want ..." "what can we ..."
Hidden agenda incentive considerable minimal
Human relations problems* emphasized, special attention fewer, tolerance expected
Implement consensus if it agrees with fiat always
Incentive to misinform, to spin? considerable, internal & external moderate, external only
Individual growth via … position in hierarchy accomplishments
Information availability? selected open, no incentive
Information flows "keep boss informed" boss stays informed
Information management details, data dump selected indicators
Input sought … periodically (annually), hearing continuously, listening
Junior-senior relations supervisory review trusted critic
Management levels* many, up to 40, increasing few, 3-5, decreasing
Management thinking timeline 6,000 B.C., formalized in 1920s current
Marketing emphasis sell, "create demand" determine needs, ask
Meetings* many, large few, small
Organizational size span of control team size vs. task
Organizational focus internal, supporters, network external, client, team
Organizational problems* many, recurring fewer, resolved
Performance appraisals conducted … one-way, top down two-plus ways, exchange
Person to task mismatch change person, position description change job, task description
Policy affecting all determined by … top down, "case-by-case" bottom up, consensus
Policy determination, implementation decide, direct solicit input, sell
Policy should be ... complied with regardless continuously improved
Predominant interpersonal mode talk listen
Problem solving approach rote, request guidance introspection, analysis
Problem solving basis, cite … fiat, process expected results, objective
Quality approach inspect in build in
Relations with other organizations subordinates, us-them, parent-child team, we, partners
Reliance on assistants, coordinators* considerable, 4+ common minimal, 0-1 typical
Reporting detail, individual, calendar driven exception, consolidated
Reward based on ... activity level, budget size results, performance
Ring-kissing advantageous? Practiced? yes, on a grand scale no, no
Senior people determine ... what, who, how, when, where objectives
Senior people focus on their ... authority responsibility
Supervisor's role judge and critic coach and counsel
Who does what determined by … position, assigned best qualified, team decides
* Asterisk (*) indicates a symptom of malorganization. See Drucker, Peter F. Management: Tasks, Responsibilities, Practices (New York: Harper & Row, Publishers, 1974, pp. 546-549).

Notes

One-page Curriculum Vita.

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