KEEP ASIDE THE LADDER!

THE IMPACT OF GLOBALISATION ON

ORGANIZATIONAL STRUCTURES
B RAVI SHANKAR

Abstract
The article introduces to us the technology of the organizational structures when
organizations expand their territories worldwide. It further explores into the process
reengineering and explains how the 'Lattice' structure is the most apt and suited for
today's need and development. The article also defines how the 'Lattice' way of thinking
works on a "knowledge for all" model, which values transparency. Information sharing
and knowledge management is promoted. Collaboration fuels the engines of the lattice
framework.

About the Author

Ravi currently heads the People & Culture and HR Innovation
Lab at HCL Technologies Ltd., a 6.2 billion USD corporation with
strength of 88000 employees. With over 30 years of varied
experience across multiple fields in HR, ranging from founding a
company (Lister Technologies) to heading HR at Crompton
Greaves Ltd & Deutsche software Limited. Ravi is well known in
the industry for this expertise in HR and also has a tremendous
breadth andinsight on broad range of subjects -Business Strategy, Information
Technology, TQM & Service Quality.An alumnus of XLRI Jamshedpur and Harvard
Business School in Information technology, Ravi is an Executive Coach at ISB,
Hyderabad for their Senior Management Leadership Program.

T imes have changed and organizations

have evolved. Yet, on the topic of
organizational structures, we tend to turn
to the pyramid as a reference. This may be
the case because the complex structure is
easier to understand today, than when the
Pharaohs built it. Without clear
organogram roles and responsibilities,
such a mammoth structure would not have
been possible!
70 April | 2012 NHRD Network Journal
Communities and tribes sought direction
from the pyramid structure while
contributing to its changes. The structure, as
we see today was perfected by Armies who
needed a clear command control of their
operations. A lot of practices that we learn
from our management books including the
concept of 'Job Description' is derived from
the army's operations manual, based on the
premise that it is top-driven.
Therefore, along with organizations, the
pyramid has evolved to accommodate both
traditional and current management
theories and practices.
When organizations began to expand
worldwide, their structures also evolved
to encompass changes that come along by
competing in a global marketplace.
Reporting relationships evolved to include
employees who work across different
locations. For example, when Unilever
expanded across different geographies, the
HR head not only reported directly to the
local CEO, but also dotted line reported to
Corporate HR at the company's Head
Office. Thus traditional one-dimensional
reporting chains gave way to a new two-
dimensional structure. In such structures,
bowing to an old adage "You can't serve
two masters" and at the same time
accommodating to newer needs, HR
practitioners created straight-line and
dotted line reporting. While this concept
is widely practiced it sometimes creates
conflicts and should be handled wisely by
the leaders.
Today, we are all playing aggressively in a
global marketplace. Large organizations
have several verticals and services, on-site
and off-shore employees and many virtual
teams working together. Customer
expectations and deliverables are diverse
and complex. Employee management
across various geographies is challenging.
How do we make accommodations for
these changes in our traditional pyramid?
Can the pyramid evolve to provide
direction in this global economy? Yes it can.
Having worked as an HR professional for
two decades, I believed that single box in
organogram would always have a single
occupant. However, in the area of Client
Relationship Management, a new concept
emerged with a belief that customer can
be served better by two teams, hence two
leaders in tandem. This made way for a
new paradigm called "Two in a Box" which
is fast catching up.
When Process Reengineering became a
necessity for business, a lot of internal
processes were undergoing radical
changes. Companies discovered that the
simple ladder structure was incapable of
handling new processes as workflow at
every stage involved multi-functional
teams. This made way to the first level of
3-dimensional structures where teams with
members from different ladders had to
operate as one entity. Each block of work
flow became a new function. For example
a function like "Inward logistics" was
created to ensure smooth flow of raw
material instead of three traditional
departments such as purchase, stores and
transportation operating independently.
With an advent of virtual teams and across-
the-border communication, the 9 to 5 job
has been replaced with telecommuting,
video-conferencing and work-from-home
options. These options continuously
question the viability of the traditional
ladder structure. However, it is also true
that century old mind-sets are not easy to
break. Ask Galileo!
In addition, we are at a defining juncture
where five generations of employees come
together in the workplace. Research
suggests that currently around 50% of the
population < 35 years and predicts a future
where Gen Y will contribute to 60% of the
global workforce.
'Climbing the corporate ladder' is a popular
term we use in businesses. While standing
on a ladder, your learning and accessibility
to information is restricted to the rung you
are standing in. Did you know that the
ladder may well be obsolete soon? While
the corporate ladder may have been a 'one-
size-fits-all' structure that suited a
traditional industrial unit, it cannot help
us in today's organization.
April | 2012 NHRD Network Journal 71
What works today is a 'Lattice' structure.
Mathematics defines 'Lattice' as a three-
dimensional structure that extends
infinitely in any direction. Lattice
structures are flexible structures where
employees can move in horizontal, vertical
and diagonal paths while developing their
expertise. Lattice structures promote better
learning, networking and collaboration
while giving people the opportunity to
define their own paths.
Research indicates that employees who
work in such structures show tendencies
to be self-directed, motivates and assume
roles of leadership with more ease. They
work as independent nodes in a highly
interdependent fashion. Organizations that
are based on these structures believe in
mentoring and not bossing. The new-age
'boss' redefines his/her role as a 'mentor'
who engages actively in sharing
knowledge with his team.
The 'Lattice' way of thinking works on a
"knowledge for all" model, which values
transparency. Information sharing and
knowledge management is promoted.
Collaboration fuels the engines of the
lattice framework.
So what happens when you introduce the
lattice structure in your organization? You
become employee-friendly and give your
employees the space to grow and flourish.
Neither will they hesitate to 'speak up', nor
will they refrain from innovation. All these
factors are ultimately beneficial for an
organization's growth.
One of the biggest advantages of Lattice
structures are that they fit in seamlessly
into the virtual world. They are aligned
with the expectations of Gen Y who are the
future of our corporate world over.
Gen Y represents a talented group of highly
motivated people who are looking for
flexible organizations. They believe in
'getting the job done' and not on traditional
72 April | 2012 NHRD Network Journal
constraints like 'working during particular
hours' or from 'one location'. Frontier
Communications is a US-based
telecommunications provider where 30%
of their call center agents work remotely,
often from home. They are 25% more
productive and have double the retention
rate of agents who work in the company's
traditional call centers
When a group of 10 Gen Y employees
expressed the desire to work on a social
networking website meant exclusively for
HCL employees, we gave them the green
signal.
Today, Meme is a pioneer in corporate
social networking. In six months, the
website went from 200 registered users to
60,000 active ones. Our Leaders engages
with our employees through MEME.
Employees discusses about company's
future, Plans, Strategy etc through this
innovative medium breaking every stage
of ladder. Employees cut across ladders,
geographies and function to collaborate on
their work and for their learning
requirements.
Recently, I came across an online
presentation by the Royal Society for the
encouragement of Arts, Manufactures and
Commerce (UK) which asks what makes
highly talented and motivated people
collaborate on projects that they give away
for free! Facebook, Linux and Wikipedia are
results of such efforts. The answer is
passion and the opportunity to master their
skills. Research completed by Lee Fleming,
a business administration professor at
Harvard Business School reveals that the
breakthroughs that arise from
multidisciplinary work "are frequently of
unusually high value-superior to the best
innovations achieved by conventional
approaches.
According to Cathleen Benko of Deloitte
and Molly Anderson, who have researched
The Corporate Lattice and the impact it has
on today's organizations, there are three
key components to the Lattice Structure.
They involve how careers are built, how
work gets done and how participation is
fostered.
Benko has also used the Lattice Structure
to bring about a new concept in Talent
Management. She refers to flexible work-
arrangements as an one-off instance and
calls for a more all-encompassing view of
career management called Mass Career
Customization where employees are
encouraged to take ownership for their
careers and can 'dial up' or 'dial down' their
commitments in terms of deliverables, time
spent etc.
So can Mass Career Customisation work
for us? Imagine you are in a salad bar with
a wide range of vegetables and dressings
References
Marquez, 2010, The Perfect Fit, Workforce Management http://www.masscareercustomization.com/downloads/WF502Deloitte.pdf
American Management Association, 2006,
The Organization's Fault http://www.amanet.org/training/articles/The-Organizations-Fault.aspx
Benko, Anderson, 2011, Mass Career Customization
to choose from. You can customise your
meal to what works best for you. Imagine
now, if you could do that with your career.
While there is no 'one' way to decide what
works best, such innovations show a
paradigm shift in the way organizations are
evolving and experimenting.
Ladder or Lattice, managing knowledge
workers in modern corporations is
challenging. We are in a transitional phase
where HR departments need to define their
company's organizational structure by
striking a balance between emerging
concepts and proven methods. How we
adapt a structure for our organization
depends entirely on what our needs are. It
requires careful thought, planning and
most importantly, an open mind.
April | 2012 NHRD Network Journal 73