Running head: HOLACRACY AND TEAM PERFORMANCE 1 Holacracy and Team Performance Team C- Shawn Green, Todd Strickland, Saeed Hicks and Kiley King American Military University
HOLACRACY AND TEAM PERFORMANCE 2 Holacracy and Team Performance An organizational structure that has gained some popularity in recent years is Holacracy. A Holacracy organization is one where managers and senior executives relinquish control and decision-making power to lower level employees. This idea is the exact opposite of the hierarchical structure, where the decision-making power remains with leaders and managers. Traditional organizational structures usually utilize a hierarchical design which in an there are first line supervisors, managers of departments, store managers and general managers etc. Furthermore, military organizations utilize a traditional hierarchical structure to ensure strict control and order over operations. A typical military structure begins at the bottom with the junior enlisted, then Non-Commissioned (NCO’s) officers, Senior NCO’s, and lastly officers. Next, a Holacracy organization utilizes small work teams where team mates can easily communicate their ideas and be a productive member. When teams become too large, it is easy for some team mates to do less work and go unnoticed. A manager’s role in a Holacracy organization is to serve as a link between the different functional areas or departments in the organization. The reduction of decision-making activity allows them to focus on their primary tasks more easily. Furthermore, the whole idea behind Holacracy is to eliminate “red tape” and allow employees working directly on a product, to have decision making power. This is to improve organizational flexibility and creativity. Holacracy has been in the work place for several years and has recently gained popularity in some industries. The idea of Holacracy is the practice of eliminating the traditional hierarchical structure and spreading responsibility among the organization (Moolenburgh, 2015). This creates collaborative leadership in organizations which allows executive and senior leaders
HOLACRACY AND TEAM PERFORMANCE 3 to “step back” from many decision-making processes and trust their employees to make tough decisions. In a Holacracy organization, employees work together toward organizational objectives without having to get approval from leaders. Holacracy shifts organizational matrix’ into self- organizing cells (Moolenburgh, 2015). Furthermore, work is structured by outcome not function. This is supposed to inspire more free thought and creativity. Next, an employee’s value is assessed by capability and skills rather than tenure or status within the organization (Moolenburgh, 2015). This would be an effective practice because the organization would be promoting proficiency and employees to seek more training to be perceived as more valuable to the company.
- Winter '16
- Jean Francis