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Are Leaders Really Needed in Organizations?
Leadership. Is it really important to have leaders in an organization? Over the past few decades, there have been companies that have eliminated responsibilities. There are no CEOs, presidents or managers. Sometimes, there are no owners. Employees are a company. In business today, some call it Holacracy.
Holacracy, also known in some circles as Holawhat is a business model that makes organizations smoother. “Holacracy was created by Brian Robertson, a 35-year-old former programmer with no management experience. He created Holacracy in 2007 because he had a “burning idea that there must be a better way to work together,” he said. interview with Fast Company.”
Zappos is one of the companies that adopted Holacracy. The CEO of Zappos, Tony Hseih, issued a notice to all employees. They had to accept Holacracy or leave. He also gave permission for three months to those who left voluntarily.
With Holacracy, they have eliminated managers. They work in circles. Each court is responsible for its own results. Although there is a leader in every circle, he does not have a head. In addition, members of the circle do not only submit requests through their leader. There is usually a steering committee.
With 4,000 employees, Zappos is the largest business to adopt Holacracy. Other companies such as Medium and the David Allen Company also promote Holacracy.
In Sweden, there is a 40-person company called Crisp that has developed their own version of a flat organization. As a Holacracy concept, Crisp has organized the business with self-organizing teams. Part of the plan includes removing the CEO. After three years of using the system, they have achieved great success and a lot of media attention.
It seems that the principle of Holacracy and management of the organization is designed to increase cooperation and involvement of employees. Due to the frustration, several selected businesses are said to have fired CEOs, managers and executives. Even a $2.6 billion construction company has joined in. The company is DPR Construction. “DPR was founded in 1990 by Doug Woods, Peter Nosler and Ron Davidwski. Today, Nosler and Davidwski serve on the company’s board, while Woods serves as part of a seven-person team.”
Perhaps the real story is that the leadership of law and order is dead. In the past, businesses grew out of the agricultural sector. Except for entrepreneurs, people are not used to self-organization in industries. Therefore, managers were required to dictate labor productivity. Also, because people often came from working in the fields, they lacked factory skills. Little by little they had not changed the team building skills they had developed while working on the farm. Therefore, departments of management were required to control operations and outputs.
In a knowledge society, people’s intelligence is part of their productivity. Although people still complete tasks with their hands, it is their wisdom to find better ways to produce results that have become important.
However, even in Holacracy or so-called flat organizations, people seek informal leaders. They need guidance from people who make the final decision in difficult situations. They need to know how they work when it comes to promotions and promotions and still seek guidance when they get stuck. These structures are often missing or unclear in Holocracy or hierarchical businesses. As a result, “Zappos has suffered from nearly one-fifth of employees who are unable or unwilling to deal with self-management issues.” It seems that Holacracy has been very successful in small businesses. Medium has about 90 employees. Besides, they haven’t made any money yet.
With all that said, it’s probably not about creating complex organizations. In an interview with Fast Company“All the confusing rules and definitions scare people, but that’s on purpose. Anonymity, Robertson says, is part of the process of connecting with the right converts. “My way of selling is trying to talk to people,” he. Holacracy’s website doesn’t make it easy to understand what the company is about. it is doing.
Maybe it’s time to start looking at businesses as people. Take away the people and you have no employees or customers. Therefore, it is wise to establish an organizational structure where people build people. As much as Holacracies and micro-organizations try to demonize and remove leaders, they have proven necessary. In some organizations they still exist, with non-permanent positions. He still works as a person of great responsibility or skill. Instead of imposing problems that no one understands, empower people to use their intelligence to create self-reliant communities. Another way to do this is to start engaging them in physical activity. It’s often better to have an outsider take you on a journey that changes your existing mindset. With new ideas, it becomes easier for people to change themselves. Most importantly, if they make the changes themselves, they will own them and make them part of the company’s culture.
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