Shaping the organization
When there’s a shake-up after some corporate crisis, there is a move not just to shift the bodies around, getting rid of a few, but also to change the shape of the old structure. These twin moves have the advantage of confusing all those involved regarding such jejune matters as to who’s up and who’s down.
The old pyramidal hierarchy as the preferred shape of organizations is slowly losing ground. This distribution of power from the apex, usually one person, to the base, usually the rank and file served well for large organizations like the military and government bureaucracies.
Conglomerates, public utilities, and businesses with nationwide operations are already shrinking in size and scope by outsourcing functions and even doing away with branches. Also, start-up entrepreneurs in fashion, e-commerce, and even restaurants, are rising in numbers and employing less than 50 employees.
This trend of smaller companies accounting for a bigger share of the employment numbers (as much as 90%) will continue as large corporations outsource more and employ longer supply chains. Smaller companies handle catering service, medical needs, and event planning on top of the traditionally contracted services like janitorial and security.
What is the nature and shape of smaller organizations in a single location?
The titles are less exalted. They are more function-based and descriptive of the key result expected of the title holder, and prefixed not with the traditional variation of “President,” as in Senior Vice, Vice, Assistant Vice and gradations associated with the pyramid structure. Instead, the new calling card (if these are even provided) will lean towards the unromantic “in charge of” followed by the item or function being supervised, like septic tank, pantry, or new business.
This functional approach may not even reflect what else the individual does. The idea of multitasking (doing many different jobs badly) is part of the new corporate landscape. There are no longer any job descriptions handed out even with their all-purpose last function, “and other jobs that may be assigned to you from time to time.” The assignment needing to be done falls to whoever is just sitting around and updating her FB status: bored out of my nuts here.
So, rather than having any shape at all, the new structure is best described as a loose connection of boxes that do not necessarily have lines linking them, except maybe to the real boss, which is usually either the owner or his daughter-in-law.
There is no formal table of organization as any such oddity issued by a putative HR manager is simply ignored and left as an e-mail in space. This ambiguity reduces the administrative burdens of a performance rating which presumes that there are functions to be undertaken and standards of delivery expected. The whole point of rating is to move up in the pyramid, along with a new title and all the salary adjustments and perks that go with that. If there is no pyramid to move up in, the whole anxiety-engendering infighting to get to the top becomes irrelevant. Informality dominates and characterizes the small organization. HR policies are there to be ignored.
There are advantages in maintaining small organizations. Rent is lower as the office layout favors an open system with cubicles for a few, rather than offices with their own bathrooms. The lack of job description does not always mean that people are clueless on what they are supposed to deliver. Their mission is clear and can be easily summarized — take care of this client. And if that client bolts, the particular job attached to it suddenly becomes redundant.
The culture shock of someone from a pyramid joining the disconnected boxes can be pathetic. Being designated as CEO, the only title that seems to be explainable to former peers of one who leaves a pyramid for a collage of boxes doesn’t mean the same thing as it does in a pyramid — being in charge.
There is no need for a designated CEO to feel offended if there are major developments like a reorganization going on in which he is out of the loop. He just needs to adjust to a new corporate reality.
The only pyramids that are relevant are in Egypt. He can make travel plans to check those out. And when he comes back from the vacation, he may need a new map to find which cubicle he has been assigned to... and how close it is to the fire exit.
Informality dominates and characterizes the small organization. HR policies are there to be ignored.