Which is a better way to classify and reward employees of a business: a flat organizational structure or a hierarchical structure? The speaker prefers a flat structure in which distinctions between employees based on education or experience are not used as a basis for monetary rewards. I strongly disagree with the speakers view, for two reasons.
In the first place, the speakers preference for a flat structure is based upon the claim that cooperation and collegiality among employees is more likely under this system than under a hierarchical one. However, this claim ignores our everyday experience in human interaction. Disagreements among coworkers are inevitable. Without a clear authoritative figure to resolve them and to make final decisions, disputes are more likely to go unresolved and even worsen, thereby undermining cooperation, congeniality and, ultimately, productivity and profit.
In the second place, whether or not collegiality and cooperation are best fostered by a flat organizational structure is beside the point. My main reason for rejecting an organizational structure that does not distinguish workers in terms of their abilities or experience is that under such a system workers have little incentive to improve their skills, accomplish their work-related goals, or assume responsibility for the completion of their assigned tasks. In my experience, human motivation is such that without enticements such as money, status or recognition, few people would accomplish anything of value or assume responsibility for any task. A flat system actually might provide a distinct disincentive for productivity and efficiency insofar as workers are not held accountable for the quality or quantity of their work. By ignoring human nature, then, a company may be harming itself by encouraging laziness and complacency.