Classic command and control organizations are antiquated, dysfunctional and ineffective.

Like most companies in the world, your workplace is probably organized according to a rigid hierarchy: Employees do whatever their bosses tell them. In turn, these bosses have their own bosses. So in effect, mandates from the highest tiers of management trickle down to each employee.

This top-down hierarchy is called command and control (C&C), and it’s based on the antiquated idea that companies work best when a hoard of uneducated minions carries out the orders of one genius leader (like Rockefeller or Vanderbilt). Companies have been organized in the same non-motivating way ever since the coal mines and factories of the Industrial Revolution.

But today, these old business structures don’t suit the fast-changing business landscape. Why fast-changing? Well, a Yale University study showed that the average American company’s lifespan has decreased from 67 years to a trifling 15.

That means businesses have to be capable of adapting – and quickly!

Eastman Kodak learned this lesson the hard way: The iconic photography company, founded in the late 19th century, the heyday of C&C, didn’t respond fast enough to the rise of digital cameras in the 1990s. And as a result, they filed for bankruptcy in 2012.

As you can see, rigidity is a major disadvantage of C&C. But it’s not the only one! Poor talent management and poisonous office politics also undermine these kinds of hierarchical workplaces.

Why?

Well, in C&C systems, a few managers have the authority to hire and fire at will. So people often get promoted not because of merit but because they play golf with the boss.

To be successful, however, organizations need to have the most capable and skillful people filling each role. And that’s why having a culture of promotions based on connections – not skills – damages a company’s prospects.

Although C&C is a dysfunctional system, it’s still the dominant way of organizing the workplace. So is it any wonder that 71 percent of American employees dislike their jobs?

There has to be a better way of organizing companies without descending into anarchy.