Managing an organisation is hard. Believe me, I know. Middle management is supposed to make the job easier, but it only makes the job harder for smaller orgs. For anything less than 100 employees, you don't need it. People should report to the brass directly. And I think the hierarchy should be as flat as possible (my view is if you need more than board, VP, and manager below, you are way too big. And you should be able to take all issues to the top anytime.
When there's multiple people, departmentalisation happens naturally, even in co-ops. It's the nature of it and helps play to people's strengths. One group handles accounting (or for larger groups, accounts receivable and payable). One handles misc aspects of the business/mission. Another handles IT. In smaller orgs, there's massive overlap. And sometimes the "group" is ultimately just one or two people doing a fuckload.
But too much middle management just slows things down.
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