Zappos recently announced their decision to get rid of all hierarchy (managers, bosses, executives, etc.) in favor of a “holacracy.”
Developed by a former software entrepreneur, the idea is to replace the traditional corporate chain of command with a series of overlapping, self-governing “circles.” In theory, this gives employees more of a voice in the way the company is run. . . At its core, a holacracy aims to organize a company around the work that needs to be done instead of around the people who do it. As a result, employees do not have job titles. They are typically assigned to several roles that have explicit expectations. Rather than working on a single team, employees are usually part of multiple circles that each perform certain functions.
Zappos estimates it will take six months or more for its employees to get the hang of it. But, as The Washington Post points out, it might take a lot longer than that:
Bob Sutton, a professor at Stanford’s Graduate School of Business and author of the forthcoming book “Scaling Up Excellence“, says “show me any group of five human beings or five apes or five dogs, and I want to see the one where a status difference does not emerge. It’s who we are as creatures.”
Is this overly idealistic or a better way of managing?
Read the rest in here.