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1 Hierarchy – equality

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The favouring of hierarchisation is linked with a belief that people differ, and that an organisation should reflect this diversity. Thus, organisations should include a number of management levels, and there should be a significant diversification of rights, privileges and benefits among different groups of employees. Special significance should be attached to maintaining discipline and strengthening the authority of power. Hierarchical organisations are dominated by the following attitudes: (1) acceptance of a strong diversity of employees, (2) a preference for elitist thinking, (3) emphasis on the significance of order which gives rise to the structure of power. Hierarchisation in an organisation is reflected in the employees’ beliefs and can be identified with the use of the following methodological indicators116:

• Structure should be steep,

• Inequalities between positions are indispensable,

• There should be a large wage differential,

• An organisation needs an authoritarian management style,

• An organisation needs centralisation,

• Hierarchy reflects very significant individual differences between employees in lower and higher positions in an organisation; employees in lower organisational positions usually have lower skills and abilities than the employees at higher levels,

• Hierarchy should be stable,

• Subordinates are dependent on their superiors,

• Employees at higher levels in an organisation should receive privileges,

• An organisation is dominated by concepts emphasising the significance of superiors and the process of managing employees.

The drive for equality results from the belief that people deserve similar rights and an organisation is a reflection of such fundamental equality. Thus, ←70 | 71→organisations should have a flat structure and limit the number of management levels as much as possible. Large diversification of employees’ rights, privileges and benefits is unwelcome. Equality gives rise to the following attitudes in organisations: (1) emphasising similarities between employees, (2) favouring egalitarian thinking, (3) orientation towards spontaneity, flexibility of structures and power relationships.

Hierarchy is juxtaposed with equality, which can be described with the use of the following methodological indicators:

• Structure should be flat,

• An organisation should strive for equality between different positions,

• The wage differential should be limited,

• An organisation needs a participatory management style,

• An organisation needs decentralisation,

• Hierarchy is related to playing different roles, for pragmatic purposes,

• Hierarchy should be flexible and undergo changes,

• Superiors and subordinates are interdependent,

• Everyone in an organisation should have equal rights,

• The dominant concepts in an organisation emphasise the significance of employees and their involvement and participation in the managerial process.

The dimension of hierarchy vs. equality is primal in relation to the dimension of authoritarianism vs. democracy (participation). Authoritarianism means striving for a one-person, unquestionable way of making decisions in an organisation, while democracy means striving for a group (fully participatory) decision-making process. The dimension of hierarchy vs. equality is also primal in relation to the dimension of power centralisation117. In G. Hofstede’s concept, the dimension of hierarchy-equality corresponds to the distance in power relations. A large distance means orientation towards hierarchy, while a small distance means equality118.

Cultural Reflection in Management

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