Corporations and Salary Grades Strategy

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Table of Contents

Importance of management in an organization
Employees lack interest in furthering studies
Employees tend to be lazy
Lack of positive competition
Expenditure of education funds
Works Cited

Is it appropriate for corporations and businesses to eliminate the many ranks and salary grades that classify employees according to their expertise and experience? Is it true that an organization with a lattice structure stands a better chance of success as compared to its ranked counterparts? A flat organizational structure is characterized by few or no levels of intervening administration between managers and the workforce. In this arrangement, the workforce is believed to be more industrious since they are directly involved in decision-making because the many layers of management have been eliminated (Francis 2). This paper will disagree with the elimination of ranks and salary grades that distinguish workers in an organization.

Importance of management in an organization

Decisions made from a stratified organization are likely to be more reliable as compared to the lattice structure. This is evidenced by the accountability nature of a stratified organization. In a lattice structure, accountability is greatly compromised. This may lead to poor decision-making because each person feels that a given situation does not fall in their compartments. Take for instance, should a member of staff make a critical decision without informing his superiors, he stands the chance of sabotaging the company.

Employees lack interest in furthering studies

If the salary remained constant regardless of the level of education, employees will not be interested in acquiring more knowledge that would be of benefit to them and the company. In most organizations, the salary scale and chances of promotion directly relate to one’s level of education. This acts as a motivating factor to the employees making them consider furthering their studies. An increase in the level of education benefits not only the individual but the organization as a whole. When the employees study, they bring the knowledge they acquired to the company bringing positive competition in the workplace.

Employees tend to be lazy

Constance in salary might act as a demotivating factor. Some employees may refuse to take an extra step because of the lack of reflection in the salary. This may negatively affect the company because an individual’s effort put into work will be minimal as a result of a lack of effort recognition. In some worse cases, very few employees will be meeting the company targets due to a lack of motivation when it comes to salaries.

Lack of positive competition

If a manager was to be paid the same as a cleaner and yet they do not have the same education, it would make no sense. These will demoralize the manager and he/ she may not work to the standards that are required because they will see no point in benefiting the company.

Expenditure of education funds

It is obvious for a manager to have higher education than a cleaner making them spend more on education than the cleaner and it will be logical to appreciate the effort of the manager by giving him/ her a significant figure to the cleaner. It is not fair for an individual to spend a lot of money on education only to be paid the same salary as a cleaner.

In conclusion, a lattice organizational structure may give empowerment to the staff but it is not advisable for a successful business. Employees ought to be paid salaries according to their experience and level of expertise. When this is put in place, not only will you have hardworking employees but also employees who apply healthy competition in the workplace. A flat organization structure should be done away with to ensure success.

Works Cited

Francis, Jonathan. Organizational Structures, n.d. Web. 2010.

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Corporations and Salary Grades Strategy

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