• Workers have more say in the company and are opinions are valued on a higher level than the traditional top-down style of leadership. • Agile organizational structure • Increased transparency and fewer conflicts • More autonomy to teams and individuals leading to more commitment • Unique decision-making process
DISADVANTAGES • Transition from hierarchical structure to Holacracy could face resistance from employees • Reorganization to Holacracy could be expensive as some managers must be compensated to leave • Inability of teams to self-regulate could adversely affect an organization • Cannot work for companies with products that affect multiple other companies. If Pepsi were to change to Holacracy and a team decided to change the ingredients. It would affect everyone in the manufacturing chain from the bottom all the way up. • Roles can become jaded if there is no set leader. Without a hierarchy, rules can become hard to follow. Difficult to get rid of bad apples in the organization.
ADOPTING HOL O CRACY • Things to Consider – “Basically, in holacracy, there is a hierarchy of circles, which are to be run according to detailed democratic procedures. At the same time, each circle operates within the hierarchy. Each higher circle tells its lower circle (or circles), what its purpose is and what is expected of it. This takes research and understanding how the organization can benefit.” (Denning, 2014 p. ? ) • Transitioning to Holocracy – A review of the organization structure must be conducted.
- Winter '18
- Decision Making