GMAT Essays : GMAT AWA / AWM Issue
Points FOR Essay Topic 2

Issue Topic 2. Organizations should attempt to remove the large number of positions and salary levels that categorize employees by skill and experience because a flat structure is more probable to foster a congenial working environment within the company.

Discuss whether you agree or disagree (partially or totally) with the view expressed providing reasons and examples.

Points FOR (in favour of) topic:

FOR Point 2.1. Employee grades and salary scales often cause intense competition between employees. The pressure to get ahead can cause the health of the employees to decline and thus reduces their productivity.

FOR Point 2.2. Often times, in companies with a strict office hierarchy, employees resort to 'dirty office politics’ to achieve their goals. Ultimately, the organization as a whole suffers.

FOR Point 2.3. A flat organizational structure would allow employees to freely interact and exchange ideas with one other. This is not always feasible in an organization with a strict hierarchy.

FOR Point 2.4. In an organization where there is a hierarchical structure, top level employees often get an indiscriminately large share of the pie by way of perks etc. This not only causes resentment among other employees, but, as has happened in the USA in the recent past in many big corporations, also leads to squandering of shareholders' money and company assets.

Example 2.4. A number of CEOs of large corporations were fired or even taken to court for squandering shareholder wealth and giving themselves disproportionately large salaries.