I've always believed that the direct manager of a team should have to work in the same conditions as the team itself. I find it distasteful when the team members are crammed into cubicles or just open desks in some sort of bullpen while the manager has a spacious private office and becomes disconnected from the conditions that the rest of the workers experience.

If you feel the need to delineate different power levels in the company with different working spaces, that's fine, but it needs to be done intelligently. Let executives who only work with other executives have their own offices. If you must put the workers in an open bullpen, though, then their immediate manager should be a part of it as well.