Feature

Equality among employees

The trend of creating equality among employees through flat hierarchical structures has helped in breaking the ‘boss’ and the ‘worker’ shackles in the IT sector, writes Vinutha V.

Gone are the days when the highest authority of a company was unapproachable in the company and was visible only at annual meets flaunting his power. The IT industry (and dotcom boom) brought into India the openness and flat hierarchical system in the corporate sector. The culture is almost the same in all organisations—everybody is on first name terms, people are demarcated less through designations, where anybody can walk into the boss’ cabin or at least send him a direct e-mail. Moreover, if you happen to be a star performer, he might even take you out on lunch.

Attracting knowledge workers

Historically, the concept of tight hierarchy was predominant in the manufacturing sector, even among MNCs. The interface between customers and employees was only through a higher authority. There was a strict distinction between employees in the lower rung and higher management. The mindset of following a strict hierarchy, which was influenced by the manufacturing industry, was seen among some early IT players too. The culture later changed when the IT industry, where “people” are the key resource, realised that to attract talent, a flat hierarchy was an important branding tool. In addition, a plethora of reasons encouraged IT firms to embrace flat organisational structure. Hari Iyer, Culture Officer, Sasken Communication Technologies says, “The IT sector is mainly driven by ideas rather than just a mechanical function. This was also coupled with the increase in operations, which led to the breakdown of the tall hierarchical architecture.”

It was aided by the management style, which was greatly influenced by global corporate culture. Supporting this view, Jagdish Bapat, HR-Head, Misys India says, “Most customers in the IT industry are from the US and UK and are not comfortable with stringent hierarchical structures. Also, IT industry comprises knowledge workers who have to keep learning new technologies.” So while the techies of yesteryears may be well-versed with COBOL or mainframe technologies, contemporary IT workers are Java and Bluetooth experts. A scenario of stringent hierarchy may not work as it can hamper the flow of knowledge.

Meeting customer needs

Dismantling of hierarchy became a social invention at IT firms, as they needed to respond quickly to customer needs Dependra Mathur General Manager-Quality & HR WeP Peripherals

Yet another significant factor that contributed to thinning of the hierarchical structure was the communication process between customers and the organisation. By breaking down barriers (hierarchy), employees were empowered to take up relevant decisions. “Dismantling of hierarchy became a social invention at IT firms, as it needed to respond to customer requirements fast. The entire organisation had to be highly responsive to customer needs,” says Dependra Mathur, General Manager-Quality & HR, WeP Periphe-rals. This applies to the entire IT sector—ITeS, product development and services areas. Faster decision process and more space for employees is imperative to the growth of the industry. The IT industry also realised that getting the best from employees was possible only by reducing hierarchy. Says Sabu Thomas, VP-HR, Adea Solutions, “Any creative thoughts from employees that are executable at the company may not reach the top management if the hierarchy system is restrictive.”

Simplified hierarchy

In fact, the definition associated with hierarchy being age and experience of an individual has changed. Unlike in other sectors, the knowledge business sector has a job-centric hierarchy. The hierarchical system has taken a new dimension with clear role definition, higher responsibilities and transparent governance. Usually in an IT organisation the hierarchical structure rarely exceeds beyond five-levels unlike 15-levels in non-IT companies. However, the names given to different levels may vary depending on domains—BPO, product and services firms. The entire organisation can be divided into entry-level, team leaders, project leaders, domain heads (finance, HR and admin) and a CEO. About 90 percent of the workforce of a leading IT company (which does not want to be quoted), are covered only in three-levels. Nevertheless, such hierarchical structures never neglect the experience an individual has. Although the same kind of work is assigned to all project leaders (PLs), they are divided into different categories—PL1, PL2 and PL3.

Greater productivity

By simplifying the hierarchical structure, IT organisations are enjoying greater productivity. Transparency in governance has given more accountability, responsibility and authority to employees, by which the risk-taking ability has increased. Redu-cing barriers is a way of giving them an open culture to work and be involved with the growth of an organisation. The liberty to take decisions and interact with customers further motivates them. Dilip H Ayyar, Technical Director, Deccan Infotech states, “A flat structure avoids differences that can crop up among employees and thereby enhances teamwork. Additi-onally, passing on a fair chunk of responsibilities to employees allows a CEO to focus more on planning strategies for the company.”

Careful implementation

Any creative thoughts from employees that are executable at the company may not reach the top management if the hierarchy system is restrictive Sabu Thomas VP-HR Adea Solutions

A flat structure if not implemented prudently, may lead to few nuisances, warn industry experts. An arrogant attitude can hamper work when an individual has the independence to take up decisions and assign jobs to others. It can also lead to passing the buck on others. Finally, it might affect the behavioural discipline of people. Another impediment associated with a flat structure relates to promotion. “There is a lot of restlessness among IT workforce as their promotions are not time-bound, rather it is based on performance of people, business growth and vacancies created in the company,” observes Mathur. Their aspirations are moving faster than their abilities. They are becoming impatient to reach their goals and hence, at times it may lead to high attrition rate.

How an open culture helps

To achieve the maximum with a simplified hierarchical structure, properly set behavioural norms and process norms can come in handy. It should clearly spell out roles or responsibilities. This coupled with a fair and transparent environment is an added advantage. For a successful flat hierarchical structure, it is necessary to create a culture of openness. Poor and inconsistent communication may lead to chaos. Once the hierarchical barriers are broken, people are also entitled to more transparency in financial and management aspects. “Although, being open depends on the individual company’s management style, a flat ierarchy coupled with openness is always healthy for any organisation,” adds Thomas. Iyer of Sasken Communication adds, “More openness associated with less hierarchy can create a learning ground for employees as it gives access to mentors and coaches of varied domain skills.”

A flat hierarchical structure can be implemented by making people’s career journey a pleasant one. Good career planning based on what an individual likes could be a better way of handling difficulties associated with a flat structure. By offering lateral movements such as in HR, marketing and operations, this need could be taken care of.

There has been a great shift in equality created by a flat hierarchical structure. It has predominantly been the influence of Western work culture that has brought about this innovation in the Indian IT industry. This wave may or may not pass on to other sectors. Experts however believe that the banking industry is ready for this change. It can happen because banking is becoming customer-oriented. However, few sectors—cement, retail and steel may not be open to such initiatives.

vinutha@expresscomputeronline.com