This article written by two respected scholars of management investigates the field of human resource management international digest. The main idea represented in this work is based on the new model’s proposition in the workplace that suits the majority of generation Y representatives. The existing system of the hierarchical structure by which organizations are currently managed should be further transformed to holacracy. This term is considered in the article as a self-managing company system that allows the distribution of responsibilities among the equally managed groups of individuals. Therefore, the authority and decision-making process is derived by self-managing teams in the organizational structure.
Compared to the traditional hierarchically based system, holacracy depends on the isolated groups of employees who have different roles and functions, including the members’ leadership responsibilities. The authors argue that people in this system have an equally spread sense of risk-taking, independence, creative thinking, and involvement in the business process. For instance, the case of Zappos company examined in the research paper shows that halocracy, combined with the rewarding system, encouraged employees to contribute cultural values and treat their new group-based system as a self-handled small enterprise.
Referring to the Zappos company’s analysis, there are three key issues outlined by the authors. First, there is always a conflict between old and new generations, which is becoming more prominent with the implementation of innovations. Therefore, the interests of both sides should be considered. Second, there is no specific moment to integrate new ideas since it is better to initiate the changes in the company directly. Third, according to Pierce and Arguinis, a company should control the “too-much-of-good-things” effect to avoid chaos in the workplace in the future (as cited in Kumar & Mukherjee, 2018, p. 14). Finally, the structural changes alone are insufficient and should come in combination with the strong values and policies of an organization.
Reference
Kumar S, V., & Mukherjee, S. (2018). Holacracy – the future of organizing? The case of Zappos.Human Resource Management International Digest, 26(7), 12–15. Web.