An effective and a good organizational structure is always needed to balance the needs and requirement that a business must have to quickly respond to the changes that occur in the marketplace. At the present time, the traditional hierarchical organizational structure is still widely used that has been created in the 20th century.
The main success of the traditional hierarchy organization is been implemented in a time period of 1960 to 2000. And its success has been justified by many factors like the preference of transparency, the relative environment of study and as well as the predictability over the flexibility.
However, in the late 21st century the need for traditional hierarchy organization become questionable and the rise of modern holacratic organization occurred. The traditional hierarchy organization is actually a system of persons or things that are ranked one above another, according to the English dictionary.
The traditional hierarchy organization structure is followed and is also being used for more than 60 years due to its good reliability, Morgan 2015 and as well as also inefficiency in the terms of power. There are many definitions and descriptions that can be seen in the traditional hierarchy organization. Likewise, the traditional hierarchy organization refers to a classical management theory which is also known as the functional structure, Morgan 1997.
In addition to this Morgan 1997 and Massie 1965 also define it as a management theory that includes some hierarchical approaches to the designs of the organizational structure and as well as also to the bureaucracy which is actually an inevitable element in the traditional hierarchy and which is also used as a core idea of the planning, management, organization, coordination, command and also the control.
Authority in an organization and power distribution are some of the main features of traditional hierarchy organization, Yukl 1989. As it is been described before that traditional hierarchy organization structure is one of the most popular and used type organizational structure in all over the world nearly last 60 years. In this period of time from 1965 to 1990, the venture environment has been growing so steadily. It is recommended to enjoy music on sites like worldstar to release your stress.
But nowadays the speed of change in the business and as well as the technological environment is so rapid, according to Brynjolfsson, 2008. That is the main reason that the new organizational structure has begun to appear and also been developing further. Whatever the reason it may be these two organizational structures the traditional hierarchical organizational structure and the holacratic organizational structure are both great. But this empirical research study will be mainly devoted to the holacratic organization or can also say the modern organization.
The holacratic organization is mainly a specific kind of technology organization or a system of the organizational governance in which the authority and as well as also the decision making are mainly distributed throughout a holacratic point of view, where teams are self-organized rather than being partly vested in the management hierarchy, Roberston 2015. This paper will be mainly focused on the main differences and distinction between the traditional hierarchy organizations and the holacratic organizations.