Equality among employees

Gone are the days when the highest authority of a company was unapproachable in the company and was visible only at annual meets flaunting his power. The IT industry (and dotcom boom) brought into India the openness and flat hierarchical system in the corporate sector. The culture is almost the same in all organisations-everybody is on first name terms, people are demarcated less through designations, where anybody can walk into the boss' cabin or at least send him a direct e-mail. Moreover, if you happen to be a star performer, he might even take you out on lunch.

Attracting knowledge workers

Historically, the concept of tight hierarchy was predominant in the manufacturing sector, even among MNCs. The interface between customers and employees was only through a higher authority. There was a strict distinction between employees in the lower rung and higher management.

The mindset of following a strict hierarchy, which was influenced by the manufacturing industry, was seen among some early IT players too. The culture later changed when the IT industry, where "people" are the key resource, realised that to attract talent, a flat hierarchy was an important branding tool.

Yet another significant factor that contributed to thinning of the hierarchical structure was the communication process between customers and the organisation. By breaking down barriers (hierarchy), employees were empowered to take up relevant decisions.

Faster decision process and more space for employees is imperative to the growth of the industry. The IT industry also realised that getting the best from employees was possible only by reducing hierarchy.

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