Salary Grades and Position Ranking: Important for Company Success

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Corporations and other business should not try to eliminate the many ranks and salary graders that classify employees according to their experience and expertise. I believe salary grades and position ranking is important to a company's success. A flat organization is not more likely to encourage collegiality and cooperation among employees. I will discuss some of my views and experiences to support why a flat organization, including no salary grades and ranks, is not best.

In companies that establish a flat organization there is confusion about leadership roles in management of employees and tasks. Employees should be ranked according to their experience and expertise and give the appropriate title to improve communication and cooperation among employees. From my work experience, employees respond much better when they know exactly who the report to and what their supervisor expects. Having ranks allows employees, co-workers and managers to communicate more clearly as to what needs to be done to be successful.

Without ranks and classification employees are confused about task responsibility. In organizations that lack clear ranking and title specification, there are more disagreements about who was responsible for what task and less accountability. While the idea of a flat organization where every employee would supposedly perform collegiately and cooperate with co-workers and managers as a result is flawed. While some employees may perform well in this type of environment, some employees will not respond as needed for success and cause a company failure in terms of performance needed to achieve success. Employees need clear ranks and task responsibility to establish exactly what their job duties so they have an opportunity to succeed and be held accountable for the task. An employee that has the opportunity to achieve a promotion through ranking and specific tasks while be more likely to cooperate co-workers.

Lack of salary growth is another problem...
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