Reference no: EM13730451

Boss-less organizations have their benefits

Can you imagine working in an organization where there is no boss? Some businesses are eliminating the management position in the ultimate flat organizational structure. Flat organizations occur when there is no traditional hierarchical management system and decisions are made democratically. Valve Corp. a video-game development company. Is an example of a business that has instituted this type of management style? Each employee gives input as to salary determinations, who they will work with. What their assignments will be. And who they will hire and fire.

Boss-less organizations can work only in firms that are relatively small with employees who are self-motivated and independent. Because of the democratic quality of this style decisions can sometimes take a long time to make and it can be difficult to find inefficiencies immediately in employees or processes. However the potential for creativity and innovation is high in companies that adopt this practice. In some cases the employees exhibit higher performance than in traditional management structures. Employees generally form work teams and have high levels of responsibility and accountability. Communication within the company is usually of higher quality and happens more quickly.

Although this kind of management system is hard to implement. after it takes hold it can be very effective. Yet there can be a significant downside: Employees who are ambitious might not like this kind of environment because there are no titles or heads of departments which limits promotion opportunities.

Discussion Questions:

1. What are some benefits in organizations where there is no boss?

2. What are some disadvantages in organizations where there is no boss?