Organizational democracy

About The Author IE Business School is a very prestigious graduate and undergraduate school of business located in Madrid, Spain. It was founded in 1973 under the name Instituto de Empresa and since 2009 is part of IE University.

A few years ago, leading business guru Gary Hamel wrote a critical 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 supervisory hierarchies and he posed the question as to why it is 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.

And 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.

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