Businesses are increasingly opting to reduce management in order to encourage a more agile working style and reduce costs.
Research carried out by PurpleBeach found that while 51 percent of businesses surveyed had increased headcount in the last five years, only 28 percent added new management layers. A further 37 percent of companies interviewed had instead acted to remove management in order to create flatter organisations.
Annemie Ress, founder of PurpleBeach, said of the research: “Businesses are having to manage a new generation of people in the workplace with very different expectations of employment. In response companies are now tending to favour flatter, matrix-style structures and a more relaxed form of leadership to foster autonomy, trust and collaboration.”
The idea of reporting to a direct line of management appears to be going out of fashion in favour of a more flexible operational and organisational business model built around a specific task and goal.
“Good companies recognise that constant dialogue with their people boosts innovation, decision making and risk management,” Ress concluded.