Second, compartmentalizing tasks in a hierarchical structure stifles creativity. An acquaintance of mine worked for a company that had established a rigid organizational barrier between designers and engineers. The designers often provided the engineers with concepts that were unworkable from an engineering standpoint. Conversely, whenever an engineer offered a design idea that allowed for easier engineering, the designers would simply warn the engineer not to interfere. This is a typical case where organizational barriers operate against creativity, harming the organization in the end.
Third, strict hierarchy undermines the collegiality and cooperation among coworkers needed for a sense of common purpose and pride in accomplishment. The message from the designers to the engineers at my friends company produced just the opposite―resentment between the two departments, low morale among the engineers whose creative suggestions were ignored, and ultimate resignation to do inferior work with an attitude that developing ideas is a waste of time.
In sum, the speaker seems to assume that humans are essentially irresponsible and unmotivated, and that they therefore need external motivation by way of a layered bureaucratic structure. The speaker misunderstands human nature, which instead requires creative exercise and sense of purpose and pride in accomplishment. By stifling these needs with organizational barriers, the organization is ultimately worse off.
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