As organizations get larger, they begin to stifle the ability of subunits to make decisions and respond automatically to change.
Adhocracy
and Porous Departments
As organizations get larger, they
begin to stifle the ability of subunits to make decisions and respond
automatically to change. One of the major reasons for the success of the
corporate raiders of the 1980s was the efficiencies to be gained by simply
buying highly diversified companies and breaking them apart into their
individual, separate businesses. The resulting freedom and flexibility often
produced much more profitable businesses.
Organizations of the future
will accept adhocracy:
Federations of relatively
autonomous units each of which can operate entrepreneurially. And within each
unit, the structure will be more fluid or porous. Arbitrary barriers between
and within departments will be less important – may even be removed – to allow
people to “float” more between units, contribute to decisions, and get key jobs
done.
Tags : Management Concepts & Organisational Behaviour - Emerging Trends In Corporate Structure
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