To create this work environment, Patagonia uses a flat organizational structure where employees have more freedom to make decisions and pursue objectives. The inspiration for Patagonia started 60 years ago. In 1953 Yvon Chouinard developed a passion for rock climbing. … They called this venture Patagonia.
Is Patagonia a flat organization?
Patagonia is renowned as a market leader and has excellent employee retention. They adopt a relatively flat structure with limited managers that are seen more as mentors rather than supervisors.
What is a flat workforce structure?
A flat organizational structure means that an organization has few (if any) levels of management between the workforce and the highest-level managers. The absence of middle managers places more authority, such as decision-making functions, at the worker level.
How does Patagonia treat their employees?
The company hires activist employees and encourages peaceful environmental protests. But for those wayward employees that get thrown in jail for their efforts, Patagonia will pay their bail (and their spouse’s bail), pay for their legal fees, and pay them for their corresponding time away from work.
Is Patagonia centralized or decentralized?
Patagonia’s New, Decentralized Approach to Sustainability Management. About six months ago, Patagonia, a global leader in sustainable apparel, dissolved its sustainability department. This is a development Rick Ridgeway, vice president of environmental affairs, is very proud of.
Who is the CEO of Patagonia?
What is functional organizational structure?
A functional organizational structure is a structure used to organize workers. They are grouped based on their specific skills and knowledge. It vertically structures each department with roles from the president to finance and sales departments, to customer service, to employees assigned to one product or service.
What are the benefits of a flat structure?
A flat structure elevates each employee’s responsibility inside the organization and eliminates excess management layers to improve coordination and communication. Fewer levels between employees improve the decision-making process among staff. The lack of need for middle management boosts the organization’s budget.
What companies use flat structure?
Flat organizations are also oftentimes called or referred to as self-managed organizations (there can be some differences but for our case we will put them together). The most famous example of this comes from Valve, the gaming company responsible for classics such as Half-Life, Counter-Strike, Portal, and many others.