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Showing posts with the label flat

Flattening the organisation.

                                       A second generation owner took over the reins of a company from his aging father as the MD (managing director).  The youngster was earnest and eager to ‘professionalise’. He had learnt that a flat structure was the best organisation type. What a coup it would be to kill two birds with one stone; to reduce costs and simultaneously employ fewer people.  People were dismissed, retired or coerced to leave.  Many people classified as 'flab' by the new boss were soon history. Lo and behold! Soon after this initiative, p ayroll costs went down and productivity went up as the fearful employees were working harder to avoid their head being on the chopping block.  About two years  after the  bloodbath  began, there was a crisis. The company was in dire straits.  Sales, quality and profitability had all plummeted a...