Workplace control can undermine company success, says business author

A psychologically safe environment and flat hierarchies lead to better results, according to a new book on corporate culture, Yrityskulttuuri ja työkyky (Corporate Culture and Work Ability) by Pauli Forma.

A rigid corporate hierarchy slows decision-making and can cause missed opportunities, writes Forma, who draws on two decades of experience in workplace well-being leadership. His research suggests that trust—not control—drives employee performance, reduces sick leave, and improves company profits.

“Everything we do happens through people,” says Sari Vainikkala, head of workplace well-being at ISS Palvelut, a Finnish facilities management company. The firm’s approach aligns with Forma’s findings, emphasising low hierarchy, clear roles, and open communication.

### Five keys to a high-performing workplace

1. Flat hierarchies encourage direct communication
At ISS Palvelut, every employee has access to a messaging app resembling WhatsApp, allowing them to contact even the CEO without barriers. Forma argues that in hierarchical cultures, leaders often lack a realistic view of daily operations, leading to caution, hidden mistakes, and lost opportunities.

2. Trust, not surveillance, boosts performance
Managers with a positive view of employees see them as reliable and motivated to learn. A negative view, by contrast, fosters micromanagement and distrust—undermining collaboration and shared goals.

3. Smooth workflows reduce stress
Well-defined roles, functional systems, and minimal technical disruptions allow employees to focus on their tasks without unnecessary friction. When processes fail or responsibilities are unclear, energy is wasted on resolving chaos rather than productive work.

4. Realistic workloads prevent burnout
Work demands must align with available time and resources. While aggressive growth targets may drive short-term results, Forma warns that unsustainable pressure—whether from management or self-imposed overcommitment—leads to exhaustion and absenteeism. ISS Palvelut reports that mental health and musculoskeletal issues remain its top causes of sick leave, mirroring national trends in Finland.

5. Psychological safety enables early intervention
In workplaces where employees feel safe discussing difficulties—including personal crises—problems are addressed sooner, reducing long-term absences. Forma notes that people often push through stress when they should pause: “They keep going even when they’re on the wrong track.”

ISS Palvelut has been recognised by the Finnish Association for Mental Health (Mieli ry) as a “Good Mood Workplace” and appears on the Finnish Institute of Occupational Health’s list of zero-accident workplaces. Despite these achievements, Vainikkala acknowledges that mental and physical health challenges persist, reflecting broader societal patterns.