What if the key innovation of the future was the end of corporate hierarchies? The growing presence of start-ups, the changing aspirations of the millennial generation and the increasing responsiveness required of businesses all call for greater flexibility in today’s company structures. In this context, the model of a business with no managers is attracting more and more companies. Let’s take a look at the reasons driving this trend.

How does a business without managers work?

Businesses without managers, such as Valve Corp, Github, GE Aviation and W.L. Gore, are on the rise. They operate with a horizontal governance model which promotes self-regulation among employees. In some cases, workers even jointly decide salaries and are involved in recruitment processes. This type of organisation seeks a fairer approach by eliminating hierarchical barriers and tends to reduce intra-team conflicts. The idea is to empower all members of the workforce, thus increasing productivity. The key to this model’s success is therefore employees’ motivation.

The business without managers in practice – the Zappos example

L.A.-based company Zappos is a subsidiary of Amazon that specialises in the sale of shoes online. It has over 1,500 employees but no boss, no HR Manager and no hierarchy. Zappos, a major player in the e-commerce field, has decided to opt for horizontal governance. Work is organised in circles of autonomous workers to which specific tasks are assigned. An employee can belong to several circles. This organisational style also focuses on building employee loyalty to encourage motivation. Employees enjoy free snacks and drinks in work cafeterias. Their day-to-day life at work is enhanced with impromptu group breakfasts, gifts on birthdays or other treats to celebrate their work anniversary. Furthermore, employees decorate the workplace themselves to help ensure well-being at work. For Zappos, the result is a happy atmosphere!

 

What about you? Are you tempted by this unconventional organisational style?