While the hierarchal business organization still predominates, it’s also changing. Now, the hierarchal model is flatter and amorphous. Innovative organizational models are often based on interlocking groups, virtual partnerships, strategic alliances, and matrix organizations.
In the horizontal organization, hierarchal levels disappear, work is simplified, and information is universally available. Responsibility, authority, resources, information, and decision-making are downloaded to the lowest organizational level. Hierarchal- functional employees evolve into process owners. Work is done simultaneously or concurrently by self-managed process or project teams. Specifications are jointly developed so everyone is familiar with them. Processes are stabilized, documented, and capable. If there are process deficiencies, the team has the skills to solve them.
Core activities are designed around end-to-end processes while special activities are project managed. However, new problems can arise. To illustrate a recent challenge in a flattened organization, a manager had three direct reports to manage 90 people. Three front-line supervisors don’t exist anymore and this person now manages 90 people. What’s the most effective way to do this? Ninety direct reports are too wide a span of control. Thus, the rise of self-managed project teams and self directed individuals in a matrix organization.
Life Lesson Earned: If you’re a contractor and employee in today’s flattened organization, you’ve got to learn to self manage your work and manage your boss. If you can’t, you’re going to be labeled as ‘high maintenance.’ This is today’s kiss of death.