Hello,
Flat organization is something we ape from the West. No, there is nothing wrong about it, if it is relevant to your industry/country culture. Notwithstanding the fact that many free countries also continue to copy the West, especially as far as Management Practices are concerned. (I am aware of the Japanese management techniques that are being followed to great advantage by many countries.)
Flat organizations rest on the premise of maturity and competence, where "extracting work performance" is NOT as difficult as in the Orient. Whether it is a question of political governance or corporate governance, the third world (or shall we say developing) countries find "command and obedience" form to be most effective. This form works best in elaborate hierarchies and not in flat hierarchies. But that is another matter really.
For working persons, regardless of the kind of organization he/she works for, growth has perhaps two dimensions (at least in this context): Money or Knowledge, Competence, Professional growth. This is an individual specific choice. If Money is your aim, the kind of hierarchy does not matter much, but if your aim is Knowledge, Competence, and professional growth, then perhaps the flat hierarchy is more suited as it focuses on your skills to ensure performance without much support from the hierarchy.
The core thrust in your question, to me, was what kind of growth should one aim at and for myself, I answer it as Professional growth. Growth along a hierarchy is limited to that one organization and may not be universal to all organizations, but professional growth facilitates permanency of acceptance across the spectrum of industry/organizations.
Maybe we should take this discussion further!
Regards,
Samvedan
July 9, 2007