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Increasingly, organization design requires getting rid of hierarchies. The reason is obvious: each layer comes at the expense of efficiency. Are your employees are not with this program? Decades of conditioning to view "promotions" as a change in title makes employees less satisfied with flat organizations. Managers have long provided consolation to employees passed up for promotion aka title change in the form of higher raise or a spot bonus. Getting employees to view a raise in salary or something other than a title change as a promotion is a big issue for companies pursuing the advantages of flat organization design. Consequently, some have found comfort in creating meaningless titles - in some companies, there are indeed more chiefs than indians! This is an excellent article that highlights the dilemma. Is there a way out? Read the article>>
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