What Is A Flat-Management Structure?

What Is A Flat-Management Structure?
What is a flat management structure

There is a lot of chatter among HR professionals about new tactics that can help get the most out of their office atmosphere. Since HR catalyst, Tony Hsieh started preaching holacracy and talking about how the Zappos business model consists of keeping employees companies have been switching over to the flat hierarchy of leadership style that holacracy consist of.

Some of the most profitable companies across the world believe in a flat-management structure to their offices run better.

Unfortunately, this is not the traditional model that is being preached to us by HR management, heck, even in grade school we are taught to believe that one person is in charge making all the decisions.

As business evolves, so does the way to run an office. Which is why progressive companies are looking to move toward new management styles that will increase productivity and help people find meaning in their work. The holacratic method helps with employee engagement, but before anything else, learn what it is, and why it’s taken so long to take off in North America:

So, What Is A Flat-Management Structure?

To put it frankly, running a flat hierarchy is more about being people-centric and creating less friction and lines between the people and decision-makers. It’s about giving everyone a say and the ability to create more and faster.

This leadership method is not being embraced by major companies or specific industries.

Companies of all shapes and sizes are trying this revolutionary leadership style to gain some sort of competitive edge over one their rivals. I attended an HR summit where I had the pleasure to meet the CEO of a food company along with a president of a major learning institution They both talked about how they were able to bring the holacratic method into their prospective fields.

Not only did it work, but giving everyone a say in the matter helped with retention, innovation, and they were able to easily make decisions.

This effective strategy is one of the most popular leadership methods in the world, but has not taken off in North-America due to archaic business structures. Few organizations like to color outside of the lines, but the ones that do tend to have a large market share within their industry.

It is the unwritten rule of business: Innovators thrive and those who are stagnant die. Or as most entrepreneurs will say “innovate or die.

If you’d like to start evaluating if you’re ready to shift away from the traditional hierarchical approach. Get a feel for the culture first, what would be the best way to give managers and employee equal “power” without people abusing it?

When this leadership method is implemented, it’s about making sure that all decisions are proper by the people.

Why Is It Taking Long To Catch On?

Quite simply, people are scared of change. Change management has a negative connotation around it. It appears that more work needs to be done to make simple changes and that egos would get hurt in the process.

The idea of selflessness throughout an organization (especially the larger ones) has the potential to affect the people who have worked hard to become a leader. Those seasoned veterans that have worked hard for a position as a manager will likely take offense to it.

A great musician once said that “the times they are changing,” so as things continue to evolve and adapt. Your organization has the choice to embrace the inevitable change that will occur or get lost in the archaic ways that businesses run.

Going through change is a bit rough for individuals and organization alike, the best way to go about it is to constantly hear people out and gain an understanding for how people feel about certain decisions.

Though the idea of managers getting constant feedback from peers may sound like a tough ordeal, it’s still manageable with the right technology.

Hearing people out when going through a lot of change and find ways to make everything a bit better. So that’s why you should formalize and come up with an action plan that will help establish the new rules around change.

Coming up with a new way of thinking within an organization is definitely doable, but whether it’s easy is up to the people in the organization to decide. Shifting to flat-hierarchy isn’t something that is done overnight, but Rome wasn’t built in a day. At worst, the idea won’t take off as planned, but you can get some variation of a new culture.

The more selflessness and lack of leadership, the less fear of failure you’ll get from employees. Think fast, act fast, and do more.

Can A Flat-Management Structure Work At Your Office?

Do you think that you can introduce holacracy within your office? Why or why not? Let us know what you think, and if you need any advice, feel free to contact us.

Jeffrey Fermin is a leader in the HR Tech industry, he spends his collaborating with multiple companies to help come up with solutions that will improve the modern-day workplace.

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