Strategic innovation is a key source of competitive advantage and differentiation for many organizations now. Adhocracy culture helps organizations become innovative and adaptable, which is imperative in today’s increasingly dynamic marketplace. Show
Let’s have a look at the characteristics of adhocracy in a business context, its advantages and disadvantages, examples of adhocracy culture within organizations, and how HR professionals can help foster adhocracy culture. Contents What is adhocracy culture?In a business setting, adhocracy culture describes a corporate approach of decentralized leadership, individual initiative, and organic decision-making. It doesn’t rely on a rigid system of authority or procedures. Instead, it focuses on consistently adapting methods by giving employees who are closest to the action permission to do their work and solve problems as they see fit. The term adhocracy became popular in the 1970s as a contrasting alternative to bureaucracy, which is structured by rules and hierarchy. It is derived from the Latin phrase ‘ad hoc’, which means ‘for this (purpose)’. Adhocracy is one of the four types of organizational culture identified in the Competing Values Framework as follows: DOWNLOADABLE CHEAT SHEET The Organization Development Process Cheat SheetWant to add Organizational Development skills to your HR toolkit? Download this concise introduction to OD. Written by HR, for HR.
Most organizations will take on more than one type of culture, but typically there is a particular prevailing corporate culture that represents the overall environment. Fostering the type of company culture that fits your business and goals will help you improve organizational performance and ultimately positively impact the bottom line. Key characteristics of adhocracy cultureOrganizations with an adhocracy culture create a participative and flexible work environment for their employees. Some of the common features of this type of structure include:
Advantages of adhocracy cultureAn adhocracy culture can be more appealing to certain companies than traditional organizational cultural models. It works well in industries where unpredictability is expected, as products can be regularly upgraded or replaced with cutting-edge technology. This type of culture can also exist on a smaller scale within specific business units. Here’s an overview of the advantages adhocracy culture offers:
Disadvantages of adhocracy cultureAdhocracy culture doesn’t suit every type of business. The lack of designed processes and prescribed procedures won’t work for industries that are required to follow strict protocols. It’s important to consider if this approach might limit your organization. Here’s a breakdown of some of the drawbacks and limitations:
Adhocracy culture examplesMany companies you are probably familiar with have embraced certain features of adhocracy culture. Here’s a look at a few of them: AppleThis technology giant has a collaborative structure organized by areas of expertise instead of product type. People with specialized duties on various teams work on every product. Each division of the company has the autonomy to perform in whatever way they see fit. Employees of this search engine and technology business have flexible work hours to both get their work done and innovate. It is recommended that they devote 10% of their time to exploring new ideas, whether or not they pertain to a currently assigned project. Employees are encouraged to participate in the decision-making process with direct access to leaders. There is also has a team mentality when it comes to management. Its “Googler to Googler” program inspires employees to coach one another. SpotifyThe way this audio streaming service company functions has become a model for other organizations. Instead of having a predetermined organizational structure, Spotify decentralizes decision-making for how work gets done. Small, cross-functional teams called Squads handle every feature of the business. Each squad has its own mission and the freedom to complete work creatively in the manner its members find most effective. HR Career PathToolPlanning out your HR career path is key to achieving your professional & personal goals. Map your own HR Career path with our new tool. Get Started TeslaThe electric automobile manufacturer has a fairly flat configuration of managers and subordinates, and employees are encouraged to think like owners of the company. There is limited or flexible structure in certain areas without much bureaucracy and politics. CEO Elon Musk has emphasized that employees do not need permission to approach people at any level of the organization with ideas that will benefit the company. Employees feel comfortable interacting with others of all ranks and outside of their departments on how to solve problems. How HR can help foster adhocracy cultureWhether your organization is a true adhocracy or adopts just some of its principles to promote innovation and individual initiative, HR can have a positive impact. Consider the following practices to help cultivate an effective adhocracy culture: 1. Adapt the modelGet a good grasp on the mindset and practices of an adhocracy but know that it isn’t one-size-fits-all. For example, you might choose to cultivate certain principles like promoting quick decision-making, or select only certain teams to adopt elements of adhocracy. You shouldn’t replicate exactly what another company does. Put your own spin on it, and it may take several attempts to get it right. Leveraging the adhocracy model to suit your organization’s needs and environment is how to meet the goal of changing your company culture for the better. 2. Promote cross-functional collaborationIf your organization has multiple siloed departments, it is essential to support collaboration across different functions. Develop forums where information can flow, such as cross-team projects, brainstorming sessions, dedicated communication channels, etc. Purposely bringing people together to share new ideas and deliberate problems creates an environment where spontaneous knowledge sharing will naturally occur when challenges arise. 3. Hire and retain the right peopleIt’s important to attract candidates that will thrive in your particular type of culture. Job applicants need to be aware of what it will be like, so be sure that your company culture is displayed clearly in recruiting materials. Whoever is doing the hiring must be well-informed about what to look for, and job descriptions should outline these specific qualities. You want to target people with a history of innovative behavior who are self-guided, flexible, and collaborative. 4. Encourage and reward desired behaviorsDefine behaviors you want to see more of in the organization, and then encourage and reward these. This includes support for learning from disappointments as well as achievements. For example, publicly celebrate decisive actions and experiments, even if they weren’t super successful. Employees will take on this innovative mindset for themselves and support it in their peers. In closingIn a fast-moving environment, mixing in a less rigid management approach can be the way to go. Adhocracy culture empowers employees to contribute and equips organizations with the flexibility they need to succeed. Fostering aspects of adhocracy that make sense for your organization will help you reap the benefits of this type of organizational culture. |