People Follow Structure: How Less Hierarchy Changes the Workforce

Shifting to self-managed teams and worker autonomy has been linked to greater engagement and performance. However, not every employee is a fan of the transition.

Source: MIT Sloan Management Review

Key Points

  • Flatter organisational structures are linked to increased conscientiousness and agreeableness among employees.
  • The response to less hierarchy varies; effective communication from management is crucial for success.
  • Organisations that have made these changes have often seen an increase in turnover, impacting workforce composition.
  • The study used a data set from LinkedIn, focusing on U.S. financial services, analysing 5,500 companies with flattened hierarchies.
  • Self-organisation may offer more autonomy but also requires employees to adapt to new responsibilities.

Why should I read this?

If you’re curious about how changing structures can either attract or repel talent in today’s work environment, this article is a must-read. It dives into the complexities of shifting from a traditional hierarchy to a more autonomous work style, offering insights that could be a game changer for managers looking to optimise their teams. We’ve done the digging so you don’t have to—check out the details!