Have you seen those banks or those big multinationals which function completely under their “bosses” and the employees only work under the orders they are given!? On top of that, they are told how to work in order to complete the tasks given. This sounds like those autocratic organizations where the management has all the power and the employees are little fragments of the business.
This is usually how most of the old and gigantic businesses look like due to which many startups are opting for a completely new way of organizing how the business works; Holocracy the 21st century business model.
Holocracy is a business model where the autocracy and decision making is decentralized and rules are followed by every member of the organization. Similarly tasks are divided into groups of employees or known as “circles” based on their experience and skills. One feature of holocracy which distinguishes it from many other organization and corporate culture is that each circle can complete their given tasks in any way they want to with just the standards and practices of the company to be followed. There is hierarchy present in this business model but it is based on the circle instead of each employee, so the circle on the top are the board of directors in simple words. Another feature of Holocracy which makes it unique is that even though the organization structure is created, it can be changed easily and anyone has the power to change it if it has more benefits than drawbacks.
Holocracy allows organizations to change and adapt to internal and external situation rapidly due to which Zappos has shifted its structure entirely based on this model.
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Sources:
- “What Is Holacracy? – Undercurrent Collection.” Medium. N.p., 05 Apr. 2014. Web. 19 Nov. 2015.
- “Making Sense Of Zappos And Holacracy.” Forbes. Forbes Magazine, n.d. Web. 19 Nov. 2015.
