The structure of the consulting company is flat, with an insignificant number of positions between the basic employees and the management. One example is the intermediate Human Resources department which was used through outsourcing in the absence of such positions within. The advantages of a flat organizational structure are an improvement in the speed of information exchange and coordination, the ability to adapt to changes in the external environment, and a decrease in personnel costs by reducing middle management (Schilling et al., 2021). Freedom for employees contributes to an increase in the level of responsibility, planning, control over their own performance, and the ability to make quick decisions.
Additionally, the consulting firm holds a straight line of authority, which is standard and implies setting tasks and orders by higher positions for lower ones. Due to this, the hierarchy in the company is respected, and more qualified and experienced employees are engaged in important strategic decisions. At the same time, such a structure during the change of leadership in the organization led to employee discontent. The difficulty arose due to the failure to take into account their opinions and the adoption of all decisions by the new president solely. Further, the change in the organization’s culture can reduce the motivation of employees and lead to layoffs since they are required to perform more while the benefits do not increase.
In conclusion, changes in companies often lead to certain difficulties. For the company considered in this case, it is important to build correct communication between management and employees, which in turn will allow the leaders of the company to understand employees and build the right system of motivation. The motivation system can be both financial and non-financial through ways such as recognition and other privileges.
Schilling, A., Celik, P., & Storme, M. (2021). What could be my next job? Using flat information structures to generate creative future career ideas. The Journal of Creative Behavior, 55(1), 53-62.