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Holacracy is a method of decentralized management and organizational governance, which claims to distribute authority and decision-making through a holarchy of self-organizing teams rather than being vested in a management hierarchy. [1] [2] Holacracy has been adopted by for-profit and non-profit organizations in several countries. [3]
Sociocracy is a theory of governance that seeks to create psychologically safe environments and productive organizations. It draws on the use of consent, rather than majority voting, in discussion and decision-making by people who have a shared goal or work process.
In flat organizations, the number of people directly supervised by each manager is large, and the number of people in the chain of command above each person is small. [2] A manager in a flat organization possesses more responsibility than a manager in a tall organization because there is a greater number of individuals immediately below them who are dependent on direction, help, and support.
Another example involves organizations adopting holacracy or sociocracy, with people at all levels self-organizing their responsibilities; [34] [35] [36] that is, they exercise "real" rather than formal authority. [37] In this respect, responsibility is an expression of self-restraint and intrinsic obligation.
Medium initially used holacracy as its structure of corporate governance. [65] [66] In 2016, they moved away from holacracy because they reported difficulty coordinating large-scale projects, dissatisfaction with the required record-keeping, and poor public perception of holacracy. [67] [a]
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Frédéric Laloux screened and researched over fifty organisations, including Buurtzorg Nederland and The Morning Star Company, with the following conditions: they had been operating for at least five years with a minimum of one hundred employees, and with a significant number of management practices that were consistent with the Teal level of consciousness. [1]
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