Jeff Haden did an interview in Inc. Magazine with Matthew Prince, the co-founder of CloudFlare, a security app company. Prince decided to not use hierarchical job titles, such as Manager, Vice President, or other executives at the company, but instead use titles that simply describe what the job description is, such as programmer, designer, and engineer.
Prince says the plan works because it helps good ideas get noticed instead of “artificial authority” winning because ideas are coming from the executives. He also says it allows more flexibility in the work people do and “egos can’t get in the way.” Overall, everyone is treated fairly because a person’s work is evaluated, not the title.
It sounds like a nice idea and might work in his company, but I think titles do matter.
Titles make employees feel good about themselves. They can tell their friends. Employees like how the title looks on a business card. It motivates them, especially when they’ve gotten a promotion. It also provides career advancement. Money is important, but a title can also show them that being in charge has value and comes with defined responsibilities. From there, evaluating employees is a more clear-cut and objective process when performance can be measured.
Titles also allow executives to more easily manage people. If someone is VP of Sales, for instance, the team knows who to report to, who is setting the sales goals, and what the structure of that department is. Even if the company’s game plan changes, there’s someone who is in charge, and boundaries can be more easily defined along the way.
As companies grow, the use of titles can help to separate responsibilities so that there is not a lot of overlap, repeated tasks, or constant meetings to determine what has to get done and how. People need to know exactly what their job is and where they fit in the company. This is why hierarchical organizations are the most effective.
It’s not unfair to use titles, though no company is perfect; anyone can misuse a title to treat others badly. It can happen anywhere, even in a company that has done away with job titles. Overall, though, companies need structure, accountability, and motivation, and titles help achieve that.
What do you think? Let me know in the comments below.
You state that hierarchical organizations are the most effective. Can you please provide some background as to how you can assert this as fact? Are you equating company size with company success?
No, I mean profit. Look at most profitable companies and you will find a hierarchical structure.