The 5 Types Of Organizational Structures: Part 1, The Hierarchy

Today one thing is certain, the hierarchy belongs in a management museum locked up for people to see, but not touch.
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This is going to be a five-part post that explores various types of organizational structures that either already exist in today's business landscape or are starting to emerge as viable options for the future of work. Each post will explore one of these structures and then I'll provide a final summary post on all five. These concepts and ideas are taken from my book, The Future of Work: Attract New Talent, Build Better Leaders, and Create a Competitive Organization. The five types of organizational structures that I will explore are:

1.The traditional hierarchy
2.Flatter organizations
3.Flat organizations
4.Flatarchies
5.Holacratic organizations

Let's start with the structure we have all come to know and love... the hierarchy.

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I've talked about several workplace practices and approaches that are quite out-dated, and the hierarchy is one of them. According to Wikipedia, "possibly the first use of the English word "hierarchy" cited by the Oxford English Dictionary was in 1880 when it was used in reference to the three orders of three angels as depicted by Pseudo-Dionysius the Areopagite (5th-6th centuries). This model was quickly adopted by the military as a way to show a chain of command, and of course, we have all seen and experienced this within our organizations (and most still do).

This type of a model makes sense for linear work where no brain power is required and where the people who work there are treated like expendable cogs. However, as the war for talent continues to become more fierce, organizations around the world are quickly trying to figure out alternatives to the hierarchy. In fact, every single organization I speak with, work with, and research, is looking to flatten out their structure. Nobody ever tells me they want more bureaucracy and more layers.

There are many challenges with this model, but to name a few. Communication typically flows from the top to the bottom; which means innovation stagnates, engagement suffers, and collaboration is virtually non-existent. This type of environment is riddled with bureaucracy and is extremely sluggish. This is why the hierarchy is perhaps the biggest vulnerability for any organization still employing it. It opens up the doors for competitors and new incumbents to quickly take over. There is also no focus on the employee experience in this type of a structure; and as organizations around the world are exploring alternative organizational models, those still stuck with the hierarchy are going to have one heck of a time trying to attract and retain top talent.

The hierarchy has permeated virtually every company around the world regardless of size, industry, or location. The greatest strength of the hierarchy used to be that it was so reliable at maintaining the status quo, which was exactly what companies wanted decades ago. However, what was once its strength is now its greatest weakness. The hierarchy is a very resilient management structure that has been so embedded in how we work that most organizations around the world are having a tedious time getting rid of it.

Today one thing is certain, the hierarchy belongs in a management museum locked up for people to see, but not touch.

In part 2 of this post I'll explore what is perhaps the most practical and scalable organizational model, the "flatter" organization.

Jacob Morgan is a futurist, best-selling author and keynote speaker, learn more by visiting The Future Organization.com or check out his latest book,"The Future of Work: Attract New Talent, Build Better Leaders and Create a Competitive Organization," on Amazon.

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