The trend has evolved to have flat hierarchies with open door policies.

Here are some points you may consider:

-- Have a maximum of 5 reports to any manager. If really need to stretch this, it should NOT be more than 7.

-- It should suit the size of the company.

-- Keep it flexible to easily get modified as the company changes - in terms of no. of employees, customers, departments, expanding into new product lines and businesses, etc.

-- Make sure members (employees) feel good about the designations - be liberal with titles and what they mean... this is especially important for small companies.

-- The manager / team leader should be competent, preferably with hands-on experience, in the result areas of his team's day to day work. Make sure you avoid a not so competent manager managing very competent team members. This could be disastrous for the organization.

Ask a hard one!

Different organisations can have different hierarchical structures at different times according to their needs. There can also be different structures within different divisions and departments within a company at the same time depending on function.

Examples

The Former: Entrepreneurial organisations, especially new start ups, generally function best with tribal structures, open door operations with everyone as informed as practical and people multi-tasking/doubling up according to the needs and problems at the time. This often involves into a loose cadre structure in the more successful operations but can turn into a rigid "do what I tell you dictatorship in times of crisis or in less well developed organisations. This (dictatorship) can be a destructive approach turning a highly flexible organisation into a rigid one.

The Latter: Many successful multi-national organisations run different departments with different structures according to their out put. Marketing can be a loose flat hierarchy facilitating creative functions whilst accounts a highly structured and strict hierarchy facilitating international compliance procedures with a strong set of checks and balances against fraud and incompetence. Production can have clear reporting hierarchies for coordination but cadre structures within production teams for quick problem solving.

The important point to remember is all hierarchies are political structures created for a purpose and that purpose is always to distribute and manage power for the benefit of the company. Get it right and the company prospers get it wrong and (particularly in the current climate) it folds.

Neil... Thanks for your description of different managements…well said, this is a very important step in building a good Co…if not well planned, it can be disastrous…

Poustina…Thanks for the brief & mentioning very important point…”timely assessment” of the managers…



Still... waiting for more feedbacks... Please give a real time experience as well....

Thanks for your inputs Naga,

Yes, I was waiting for this important point as well...

We already have a predifined slabs/groups/levels based on the "years" of experience... but is this fare?!

Believe me, I have seen candidates with 3 + years experience, but performance wise they are not even upto the mark of a guy with 1 year Exp.
& also vice versa ....

As you have mentioned, the real worth & caliber of a person should be evaluated...not the years of Exp.....

would like to know others' opinions on this as well...

Thanks Naga,

Will wait for others to debate on this issue as well...