The hierarchical corporate culture was what was predominantly seen due to its stability and risk minimizing capabilities. The recent shifts to technology has created a world that is fast paced and requires a flexible and innovative system to implement changes and staying relevant in the marketplace.
Zappos was a company that promoted self-governance, employee empowerment and the abolishment of job titles. Though Zappos was relatively successful, this model did not catch on, and the lengthy debate of what type of corporate structure is the most beneficial to both the company and its employees rages on in both our classrooms and in the HR world.
This topic greatly interested me, and the article Are Managers Really Necessary by Sharlyn Lauby on her blog HRbartender along with her reading Who’s the Boss? There Isn’t One, provided me with some additional insights.
My original thoughts were that the success of this structure was highly dependent on the motivation of the employees, how driven and specialized they are. Though this may be true, it is only the tip of the iceberg. I realized the key word in the question, are managers necessary, is the word manager. A manager is not a leader, they are someone who assigns tasks, provides benefits and punishes wrongdoers. These were never the people who were motivating employees, or determining the next best innovation. I was and many people were confusing them with leaders.
While I may agree with Sharlyn that the de facto boss may feel discouraged since they are not recognized for their hard-work, I would also say that this is because of the poor system that is in-place. Like her next comment that people needs to be trained to work bossless, so do systems need to be changed to implement bossless. Like Valve, if each employee were to rank their co-workers, the de facto boss would be recognized if they are preforming. Hence, I do not believe that would be an issue. Rather, these de facto bosses are not just a manager, they are leaders. They chose to take charge of the project because they like the project, they want it to go well, and not because of their title. I have experienced first hand the difference between a good leader, and a poor leader in the startups that I have been in. It makes the difference between working on the project because you love it, and working on it because you want something on your resume.
So yes, if we are to have a strong leader in place of each manager I would be sold, but if it is replacing each manager for an average employee, that would be anarchy.
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