It’s easy to see the appeal of leaner organisations: Faster decisions, more time for innovation and core business activities instead of getting bogged down with reporting, scheduling and other management tasks – and, of course, the enticing cost savings. According to a Morgan Stanley analyst, Amazon’s plan could cut about 14,000 manager positions and save up to US$3.6 billion.
But it’s crucial to examine the potential trade-offs.
TRADE-OFFS OF A FLATTER HIERARCHY
The latest moves give middle managers a bad rap. They’re easy to accuse of having little expertise, unlike individual contributors, or having little say in organisational change, unlike senior executives.
In today’s evolving work environment, managers play a crucial role in providing mentorship, fostering collaboration and driving employee engagement – if they are correctly resourced to do so and which consultancy studies suggest they are not.
The move toward flatter organisational structures could significantly impede these efforts, as fewer managers may have less time and capacity to support their teams effectively. Managers overseeing more team members may face increased workload and burnout as they shoulder a wider range of responsibilities. This might also lead to a decline in employee satisfaction, especially for those who value mentorship and professional guidance as a core aspect of their work experience.
