How Do Flatter Hierarchical Organizations Prevent Middle Managers from Career Plateauing?

Abstract

Since Ference, Stoner, and Warren (1977) describe a career plateau as“ the point in a career where the likelihood of additional hierarchical promotion is very low”(p.602), traditional studies of career plateau primarily investigate this phenomenon based on the assumption that upward mobility is good. However, this situation has been changing and some studies focus on new career plateaus under flatter hierarchies (Sakurada, 2005).

This study focuses on Schein’s career model (1978) and Feldman and Weitz(1988a, b)’s career plateau concept. And it also examines how flatter organizational hierarchies influence career plateaus and what factors work as additional incentives instead of the promotion incentive in “flattened” companies.

Therefore this study set two questions to make clear the new career plateaus in flattened companies. First, do flatter organizational hierarchies make more managers career plateaued? Second, what factors do work as additional incentives instead of the promotion incentive?

Our data from Japanese companies shows that flatter organizational hierarchies make more managers promotional career plateaued but do not influence a career plateau in radial movements. It also shows that delegation of authority in flattened companies can avoid a career plateau in radial movements.