Aren hierarchies obsolete in todays dynamic business world?
Jaques and Brown discovered people organize themselves naturally into hierarchical layers to get work done. The key to this layering was problem-solving capability. This works both upward and downward. Each higher layer must be able to solve the work problems the layer below can not solve. Each higher layer also must be able to design work and goals that the next lower stratum can accomplish. Most business people as well as academics would say this is an ideal. But Jaques found he could measure this capability by the time-spans of the assigned tasks. This means we can design and build an organization structure using layers • that is not at odds with the capabilities of the people in it thus reducing interpersonal strife, • where work and goals are clear at each level thus increasing effectiveness, and • where work problems are solved quickly thus increasing efficiency. Requisite hierarchy is designed to be sensitive to the voices of the work processes, the employees, and the customers.
