Introduction
Background
In today’s ever-changing world, there are many models and structures that are being created and destroyed every day. The last decade has seen some of the world’s worst economic crises and some of the greatest economic debuts. Today, every company strives to be modern by adopting strategies that look forward rather than looking backward. One of the best ways of doing so is using holacracy, heterarchy, and fractal organization as ways to bring your business forward.
There is a variety of different businesses that require different strategies to move forward. Depending on the type and business goals, they might adopt another managing and organizational design. However, in the globalized world of today, it is important to stay competitive in the international or national market; hence it is vital to make use of some strategies.
Objectives of the essay
The objectives of this essay are to educate the reader on the many business structures that are used by companies today. It is vital to remember that today it is essential to modernize in every way possible and keep in mind the ever-changing structures. While the world is globalizing in most of its parts, it is crucial to make sure companies are making sure to remain within the standards that are laid out before them.
This essay aims not to convince the reader of a certain point of view, but to review the different business strategies and lay them out before the audience. It is impossible to judge the effectiveness of certain strategies without examples. However, it is still important to theorize them and debate whether they could be useful. This essay strives to define and discuss the structures mentioned so that the reader might have the necessary materials to make judgments.
Overview of content
An overview can be made by listing the terms that will be used within this essay. The text will discuss organizational forms such as holacracy, heterarchy, and fractal organization and their role in today’s dynamic and networked markets. The significance of these structures cannot be underestimated since they make sure the businesses work to satisfy the sellers and consumers.
Definitions of terms
Holacracy
This term refers to the management system that strives to be in touch with the complex environment of business and economics today (Kurt, 2017). It has an entirely innovative structure that allows it to be relevant in the social and business environment today.
Heterarchy
This is a term that refers to adaptive governance, which includes hierarchy and networks in a way that is useful and modern for most business structures (Dekker & Kuchar, 2017).
Fractal organization
The fractal organization is what the business world refers to as the creative strategy that allows the business world to strive in today’s ever-changing world. This system recognizes that the human operating system is ever-evolving and mimics its creativity and vitality (Coleman, 2016).
Main Body
Holacracy
In the dynamic world of today, it is vital to stay modern and adaptive. Holacracy, therefore, allows companies to replace the existing structures with new approaches that answer the questions that are put before them today. This structure relies on self-governing as a way to reduce the power of the authority and the manager-employee relationship (Schell, 2021). What is vital about holacracy is its adaptive nature, which allows for the changing business world of today. While businesses and companies grow and change exponentially, holacracy provides for these changes to be beneficial to the company. This approach first came to light amongst the technological changes and is still relevant today.
Another reason why holacracy is incredibly useful is the relevance a company will entail when adopting this strategy. This structure allows the company to eliminate management structures, giving the main power to the company body instead. The company becomes more effective by distributing the energy throughout the company. The entire organization judges the trends that the company follows, and being involved in the decision-making is an important motivator for the workers.
Heterarchy
Heterarchy is important due to its complexity and adaptivity, similar to holacracy. This structure brings together hierarchies and networks to create a modern approach that is useful to companies today (Dekker et al., 2017). The order that heterarchy follows is similar to plate tectonics, with the relationships between different actors unclear to the outside eye. The value anomalies, or the contradictions, which arise from analyzing these relationships show off the natural choices in this system (Dekker et al., 2017). This complex structure is responsive to the changes in the world today.
This kind of management does not rid of opposing values. Instead, it makes use of them by combining and controlling them in a way that benefits the entire company. According to Dekker et al., this system helps the company deal with uncertainty and complexity. The use of this structure is vital to business companies today as it allows them to stay relevant and prepared for any changes. This type of management is innovative, however, it does not sacrifice the quality of the services the company provides.
Fractal organization
The implications of fractal organization, so dividing the business into smaller parts that are easier to manage, is that there is more order in the company. This is a useful concept, as the human brain tends to work better in smaller portions and groups (Webber et al., 2020). While there is a complexity to a fractal organization, it is much more simple as a result. Some of the most important properties of a fractal organization are emergence, co-evolution, sub-optimality, requisite variety, shared purpose, and information sharing (Coleman, 2016). All of these allow for the company to be modern and innovative without sacrificing the quality of the services. According to Coleman, it is important for the company to remain active in its development, however, it is less crucial to stay perfect (2016). It is important for these companies to remember that they are a part of a more prominent structure than just themselves (Coleman, 2016). Furthermore, these structures are not ‘black and white’ but rather deal with complexity at all levels, making decisions that are based on more than just appearance.
It is also vital to note that fractal organizations are self-organized. This allows these companies to adapt to the changes around them and the challenges they might face. According to Coleman, an example of a fractal organization is Pixar (2016). And, undoubtedly, almost anyone will agree with how successful that organization has been. Therefore, a fractal organization is necessary for success in the business world.
Bringing Everything Together
Overall, all of these tactics strive toward making the company relevant and useful in the changing world. Diversity and healthy competition are innately important to any business environment, and holacracy, heterarchy, and fractal organization ensure that. It is important for businesses to be in touch with the evolving world of today, and adaptive structures allow them to do so. In the dynamic and networked markets, there is no space for halting, which means that movement should always take place. The concept of making smart choices is fundamental to business and economics.
Most businesses follow different strategies in the market. However, it is important to remain dynamic, as things might change at any moment. A combination of strategies, such as those listed above, can assure the companies that enter the market are prepared for the challenges that lie before them. According to Elliot et al., competition in the market is essential (2018). With the strategies such as holacracy, heterarchy, and fractal organization, a company is successfully competing in the market.
The concept of a business might be difficult to grasp, however, with the right management and organizational structures, it will be successful. The business plan of a company must be based on its goals, and the organizational structures have to be a part of the considerations. Furthermore, the legality of the business is essential, which is also much more easily managed with the appropriate business structures.
Companies that follow a unique combination of established practices are most successful. It is important to remain aware of the changes the company might experience and to remain responsive to them. Communication within the business and the company is vital to development and survival in the business world. Furthermore, depending on the company’s size, it is important to be aware of what the company employees have to say and take their opinion into account. Hence, a less traditional management structure might be most beneficial to the company. Distributing the power across the board might mean better and more informed decisions for the company, based on popular opinion rather than a single person’s call.
Conclusion
In a world as complex as today’s business world, it is important to stay absolutely in touch with the changes. Structures such as holacracy, heterarchy, and fractal organization are designed to help individuals and companies be modern and innovative in their practices. While it is difficult to predict what the business world will be like in a couple of years, it is important to make sure the company is at least one step ahead of today. While it is difficult to judge globally and objectively since different companies might have unique strategies that work for them, a combination of these structures, when employed by a company, works unquestionably.
References
KURT, S. (2019) ‘Circle Structure in Holacratic Organizations: An Analysis of How to Process Tension into Change’, in Lochmahr, A., Müller P., Planing P., and Popović, T. (eds.) Digitalen Wandel gestalten. Wiesbaden: Springer Gabler, pp. 49-59.
COLEMAN, D. (2016) ‘Collaboration and the Fractal Organization’.Medium. Web.
WEBBER, E. and DUNBAR, R. (2020) The fractal structure of communities of practice: Implications for business organization.Plos One. 15(4). Web.
SCHELL, S. and BISCHOF, N. (2021) Change the way of working. Ways into self-organization with the use of Holacracy: An empirical investigation.Wiley Online Library. Web.
ELLIOT, M. and TALAMAS, E. (2018) Bargaining foundations for price taking in matching markets.SSRN. Web.