This is intended to increase adaptability within workplaces in order to imply for people to take roles as needed. As mentioned by Morgan (2015), holacracy can be more viable for smaller or medium size organizations or perhaps larger organizations that have started 8
Research Paper: Holacracy off with holacracy as their base-operating model. Also, power and leadership is distributed through the organization to the point that it might influence drive performance. There are certain circumstances in which holacracy might not be considered. If an organization is to apply the holacracy concept, it will only work effectively if is applied as the operating model at the beginning of a newly established business. This will mean that this concept will only work on small and medium size companies due to amount of employees involved. The reason for this, it will set the culture of the work environment versus everyone trying to adapt to something that they are not used to. This will involve many interactions and nonlinear dynamics rather than the usual hierarchy that people are used to follow. Also, some challenges arise while considering other approaches because most employees are used to reporting a matter or asking for guidance to a higher authority instead of making the decision on their own. As mentioned by Romme (2016), circular management implies that power and leadership is distributed throughout the organization while maintaining an unambiguous hierarchy. This type of management practice appears to ease managers’ strangleholds on their organization. Therefore, these individuals have demonstrated how principles of circularity of power and authority enhance organizational resilience (Romme, 2016). Organizations leading with this concept may s ustain many interpretations among different audiences without regards of the consequences for their actions. Also, it will cause corporate hierarchy abandonment when implemented if oversight is not established. Organizations that promote holacracy or anything that does not have some sort of management oversight, may pose some challenges ahead with highly uncertain dimensions and consequences within their boundaries. Moreover, with this grand challenge, there are endless possibilities in knowing how to advance best towards an 9
Research Paper: Holacracy effective work environment. Holacracy is fundamentally changing the way businesses perform their operations, therefore it should be an option that companies can explore. Implementation Implementation of a holacratic system of management can be difficult for any organization, since most of the employees may not be familiar with or may have never worked in a holacratic style of management. This lack of knowledge on the subject can cause people to have misconceptions about what it entails and how employees can benefit from it. These misconceptions can really hold people and organizations back, according to George Romme. The most commonly occurring and most damaging misconceptions can be that holacracy is non-
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- Spring '20
- Management, Flat organization, Holacracy