Renowned French MBA institute INSEAD conducted a survey to gauge the types of organizational hierarchies that lend best to talent management practices. This study was conducted across six major, but unrelated industries. Majority of the respondents were from Europe followed by North America, South Asia and the Middle East. It was found out that most respondents preferred a Christmas tree formation rather than a pyramid. This apparently fosters better communication within the team leading to improved collaboration. Also in demand is a structure, where there will be fewer layers between the CEO and the junior-most levels. Another idea in vogue is reducing the number of spans leading to increased number of subordinates per boss. This leads to lesser time spent micromanaging. Larger spans also facilitate having fewer layers, thus reducing the distance from the top.

Source:https://knowledge.insead.edu/blog/insead-blog/the-shape-of-hierarchy-and-why-it-matters-7351

Uploaded Date:19 January 2018