The idea of self-organization arose as a result of the limitations and inefficiency of traditional hierarchical organizations.
Organizations have come to understand the need for a more flexible and adaptable method to leverage the collaborative intelligence and creativity of their employees.
Self-organization is a decentralized organizational structure in which decision-making authority is distributed among teams and individuals. Through self-organization, teams are better able to adapt to and respond to complex and altering circumstances.
Self-organization models typically exhibit the 3 characteristics listed below:
- Teams constitute the structures.
- Teams self-design and self-govern.
- Leadership is situational.
The amalgam of these 3 elements leads to an organization that gives precedence to being responsive to the requirements of the work itself rather than following the instructions of any influential person.
The idea of self-management originated with self-managed teams in the 1960s. In the 1980s, the concept evolved into adhocracy, and in the 1990s, it was referred to as "the networked firm." Open-source, Agile methodologies, and the sharing economy have recently shaped involved structures, such as podularity, Holacracy, and customized self-organization methods.
There have been many versions of self-organization, but Holacracy is the most well-known and thorough system. In every way, holacracy exceeds conventional rules of organization. The degree of formality of holacracy adds to its comparative ease of evaluation and analysis, especially in light of its wider adoption and implementation relative to other organizational designs.
The self-organizing teams in a holacratic organizational structure are referred to as circles or holons. A Holon simultaneously exists as an independent entity and as a component of a greater entity.
Circles not only manage themselves, but also actively engage in self-design and self-governance while following the established guidelines as a component of the larger entity.
Holacracy is distinguished by its highly flexible and adaptable structure, constant engagement with all stakeholders, and tolerance for uncertainty. Holacracy is also distinguished by its systematic approach to business, which encourages significant employee participation in every facet of the organization.
Holacratic organizations adopt a constitution — a living document — that outlines the principles by which circles are formed, modified, and dissolved. The constitution specifies duties, limitations, and interactions between circles rather than task completion procedures.
Circles not only self-manage, but also actively participate in self-design and self-governance while adhering to the constitution's guidelines.
In a holacratic organization, a "lead link," who is also responsible for connecting a circle to the larger circles of which it is a part, reassigns roles.
Holacracy can be described as the practice of organizing an enterprise so that the tasks at hand take precedence over the individuals conducting them. An individual may be designated several responsibilities while performing work, leading to their participation in a greater number of circles or holons simultaneously.
Each position entails a distinct level of responsibility and authority, ensuring that each employee is aware of their expected responsibilities. When a particular role's responsibilities exceed an individual's abilities, the role can be subdivided into multiple lesser roles.
In contrast to traditional hierarchical structures, in which management operates from the top down, Holacracy incorporates management at all organizational levels. Holacracy promotes collaboration between peers by granting everyone the right to participate. When any team member identifies a gap between the current and desired state, an all-staff meeting is convened to address the issue collectively.
The Holacracy Framework offers a number of potential benefits to organizations that adopt the model, but it has also received its fair share of criticism and faces obstacles.
Several businesses, such as Zappos, Morning Star, and W.L. Gore, currently use the Holacracy management system.
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