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Does the flat organizational structure offer greater well-being?

  We live in a time of intense change, where artificial intelligence and technological advancements are transforming the world overnight. This new reality is referred to as a BANI world, characterized as: Brittle Anxious Nonlinear Incomprehensible The BANI world demands…

Ida Protuger

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Happiness at work

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We live in a time of intense change, where artificial intelligence and technological advancements are transforming the world overnight. This new reality is referred to as a BANI world, characterized as:

  • Brittle
  • Anxious
  • Nonlinear
  • Incomprehensible

The BANI world demands positive adaptation to change and a strategic allocation of resources to maintain and enhance productivity and growth. To meet these challenges, many organizations are shifting from vertical hierarchies (waterfall organizations) to flat organizational structures. These transformations are often implemented through Agile practices, Holacracy, OKR frameworks, or similar methodologies. The primary goals are greater agility, more effective work processes, and higher productivity.

 

Results-driven management

The key to functionality in flat organizational structures is results-driven management, which requires nurturing specific mindsets and skills for successful implementation. Aline with stronger decision-making skills, this model requires solution-focused thinking, effective communication, and resilience.

However, employees are not machines, and we can’t just implant these skills but cultivate these skills. And to cultivate these skills we have to address employees’ needs and emotions because they have to see meaning in their engagement. Emotions make the difference between people and machines. Hence, emotions can use as a strength in this fast developing AI world, or could be a peoples weakness. Emotions are the root of intrinsic motivation—an internal drive that resulted in all the achievements in the history of humanity and individual successes.

Without intrinsic motivation, Diana Nyad would never have swum from Florida to Cuba at the age of 64, Nikola Tesla wouldn’t have discovered alternating current, nor would extraordinarily sports records would be achieved.

 

Intrinsic vs. extrinsic motivation

Unlike extrinsic motivators, which rely on rewards or punishments, intrinsic motivation comes from within. In corporate environments, employees primarily exchange their skills for financial compensation, a reward. However, financial rewards alone are insufficient for happiness and engagement. The quest for happiness, inner satisfaction, and fulfillment, what we call well-being, is the main positive driver of human action.

If we imagine employees’ resources as a battery, it can either be drained by stress, frustration, and dissatisfaction or channeled into creativity and productivity. This is why the work environment is so crucial, and leaders play a essential role in shaping it. Recently, I spoke to an employee who shared that her motivation had significantly declined since getting a new manager.  The main issue, she explained, was that the new manager seemed solely focused on their own results and viewed employees as a instrument towards that end.

To nurture creativity and productivity, people need to find meaning in their work while being supported in maximizing their potential. This presents a critical leadership challenge: creating a corporate culture and work environment that draws out the best in people and channel it toward organizational growth.

well-being at work

Leadership’s role in well-being

Creating a corporate culture and work environment that brings out the best in people and channels it toward organizational growth is a critical leadership challenge. According to the World Economic Forum article “Addressing Employee Burnout: Are You Solving the Right Problem?”, toxic work environments contribute to 62-73% of negative work outcomes.

Take Diana Nyad’s swim as an example: she succeeded on her fifth attempt only when her personal resources aligned with favorable conditions.

While people have diverse interests and definitions of happiness, they share universal physiological needs (Maslow’s hierarchy) as well as psychological ones: acknowledgment, affirmation, belonging, security, and self-actualization. When leaders address these needs and create environments where individuals feel safe, recognized, and valued, they can harness positive human potential for organizational growth.

 

Three pillars for creating a thriving environment

Given the challenges of the BANI world and the need for solution-focused mindsets, my organizational training, which supports growth through wellbeing, is designed to strengthen three key pillars:

  • Supporting Autonomy: Autonomy is essential for the development of mature individuals. It involves self-awareness, accountability, and the ability to make independent decisions. In organizations, autonomy allows employees to manage their resources freely while being accountable for results. Employees who are confident in their decision-making and have a solution-oriented mindset are better equipped to drive organizational growth.
  • Building Relationships: Humans are inherently social beings, navigating between the need for individuality and authenticity, and the need for belonging. Effective communication skills and emotional intelligence are essential for building productive relationships. Leaders with strong emotional intelligence inspire others and encourage greater engagement.
  • Strengthening Resilience: Resilience helps individuals recover from crises and overcome challenges more easily. Older individuals are often said to be wiser – not because of age, but due to their experiences. New experiences engage our adaptive resources, develop new skills, and demand solutions. By strengthening resilience, employees can develop the skills necessary to positively adapt to change and leverage their strengths.

 

Strengthening these pillars leads to greater workplace well-being. Autonomy fosters self-actualization and resource management. Building relationships addresses the need for connection and belonging. Resilience enhances the ability to adapt to change and cope with adversity. Together, these elements create an environment where employees thrive, ultimately driving organizational growth.