Business Book Summaries

In a recent Harvard Business Review blog post, executive coach Harrison Monarth argues that removing job titles at a company doesn’t really make a difference when it comes to organizational power structures. Monarth points to research that suggests “people naturally strive to attain higher status in the form of admiration and respect from peers and those perceived to be more powerful … because status is as important to us as breathing.”

For companies striving to eliminate or reduce their organizational hierarchies, this would seem to present a dilemma. On the one hand, employees in a “flat” organizational structure have no real authority over others in the company, which has the benefit of breaking down silos, increasing collaboration, and speeding up decision making. On the other hand, if we are psychologically predisposed to creating hierarchies on our own, it is likely that these benefits may not be realized to the extent hoped for by companies.

While there probably isn’t a clear solution to this problem, one way companies can realize more benefits from a “flatter” organization is by teaching employees how to influence and lead without formal authority. Doing so would better prepare employees to work in an environment with less structure and possibly prevent an organic or unofficial hierarchy from forming.

Some great books on the subject include Results without Authority, Flat Army, and The Titleless Leader.