Open Organizations Are Very Welcoming

Open organizations are very welcoming to new employees at every level of the organizational hierarchy. In this type of employment structure, the "job makes the person" (123). Employees are capable of working their way up laterally through the organization, regardless of the employee's previous experience. New employees are also allowed to assume higher-level managerial positions, if they are deemed qualified to do so. A sales organization is a good example of an open organization. Often, particularly in commission-driven organizations, individuals are accepted for a trial period to see if they have the talent and ability to succeed. If this is the case, they may be promoted -- if not, the organization loses little in giving the salesperson a trial period of employment at relatively low pay.

Other examples of open organizations might include Google, or companies that need a diverse range of experiences and talents to function (it, marketing, knowledge of international business and intellectual property) and value creativity and dynamism (Life at Google, 2001, Google). Employees are often hired 'at will' -- in other words, they can be fired at any time, if their performance is not up to a specific standard (Berman 2000: 124). Open organizations are also more likely to value worker results rather above seniority in performance reviews and welcome new employees on every level of the hierarchy. A vice-president might be 'asked in' from another company if he or she is believed to have the talent to thrive. Or someone from another relevant division, such as advertising, might be asked to join another branch of the company such as it to 'shake things up.' This is called a 'lateral' transfer or promotion (Berman 2000: 123).

Closed organizations have high barriers to professional entry (such as educational institutions and accounting firms) and are also unwilling to admit new employees to the upper ranks of leadership. Promotions tend to come from within the organization. Divisions and departments are relatively impermeable and few individuals, other than entry-level workers are admitted from outside. People who seek to become members of closed organizations often value stability, which is why there is often such outrage if the promotion policies of the organization are questioned. Often, in exchange for lower pay, an individual is willing to become part of a closed organization, like a university, because of the security and benefits such organizations offer. The dangers of static membership are that the ideas of a closed organization can become quickly outdated. Attrition may also occur if more creative employees feel as if they are not adequately rewarded in performance reviews, and only seniority is valued. Civil service jobs are paradigmatic 'closed system' jobs, where focus tends to be on ranks and grades in advancement rather than demonstrable performance at the job (Berman 2000: 125).

On the other hand, having an open organization can mean that it is difficult to keep top talent at the company, because of the fluidity of the organizational culture. Fewer benefits and less stability foster less secure organizational loyalty. High rates of turnover can make job analysis and evaluation more difficult, given the constantly changing personalities at an open organization.

Should lateral entry at higher management and supervisory positions be encouraged? Are open organizations vulnerable to lower hiring standards than closed organizations?