Before talking about the advantages of shared and participatory management of the company, it is necessary to make a premise: flexibility and rapidity in changes constitute a competitive advantage in organizations, this especially in light of the high uncertainty of the markets. What are the means and methods necessary to obtain this competitive advantage? We will talk about it in this article.
Shared and participatory management vs traditional management
In traditional companies the structure follows a pyramid scheme; this approach, which derives from military-type organizations, provides for a hierarchy on several levels.
The flat organizations on the contrary:
- they are structured on a few hierarchical levels
- provide for the direct involvement of employees in decision-making processes.
Taking these two types of management into consideration, it is also necessary to consider changes in the conditions and the scenario in which they operate.
Increasingly, companies go to set up business networks, frequently located in geographical areas throughout the world.
Another point to keep in mind is that companies carry out their activities through a plurality of different and connected organizational units.
Participatory management: the advantages of a flat organization
A simplification of the organizational structure also entails the relative simplification of procedures, rules and rules. This also leads to a reduction in the firm’s fixed costs since a pyramid structure on the contrary absorbs a substantial number of qualified resources, removes them from operational tasks and consequently lengthens the time of decision-making processes which are precluded to employees who deal directly with the activities .
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