why are organisation basic to democracy
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Few years ago, leading business guru Gary Hamel wrote an article in the Harvard Business Review entitled First, let’s fire all the managers. His argument was that organizations are dominated by the inertia created by supervisional hierarchies and that nobody bothers asking why a certain number of workers (depending on the sector and other factors) seemingly require a layer of bosses to watch over what they do.The reality is that these management layers are actually very expensive to sustain: they require high salaries and incur indirect costs such as supportive administrative infrastructure, etc. As an example of how things can be done better, Hamel cited the case of Morning Star, a US preserves company that has neither hierarchy or bosses. Employees self-manage through work groups, and create and negotiate what they call memorandums of understanding, or service agreements, between teams and colleagues whereby they agree to meet individual and group objectives that they themselves set. Other well-known companies such as outdoor wear manufacturer Goretex work along similar lines.
These companies are radical examples of what has come to be known as organizational democracy. Obviously, the concept does not carry the same connotations as in the world of politics, given that it would make no sense if all employees had the right to periodically vote on a program proposed by differing currents within the management. Instead, what this approach aims for is a significant degree of worker participation in many decisions, linked to mechanisms to allow for delegation and empowerment. In short, the company’s decision-making capacity is increased, and many workers are given greater autonomy, which of course is not exactly the same as sacking the managers, but it does reduce their power and minimizes the importance of hierarchy in the company. We can find other examples of this kind in Hewlett Packard, which has proved effective in terms of innovation, one of its major strategic objectives.