Concept

Adhocracy

Summary
Adhocracy is a flexible, adaptable and informal form of organization that is defined by a lack of formal structure that employs specialized multidisciplinary teams grouped by functions. It operates in an opposite fashion to a bureaucracy. The term was coined by Warren Bennis in his 1968 book The Temporary Society, later popularized in 1970 by Alvin Toffler in Future Shock, and has since become often used in the theory of management of organizations (particularly online organizations). The concept has been further developed by academics such as Henry Mintzberg. Adhocracy is characterized by an adaptive, creative and flexible integrative behavior based on non-permanence and spontaneity. It is believed that these characteristics allow adhocracy to respond faster than traditional bureaucratic organizations while being more open to new ideas. Robert H. Waterman, Jr. defined adhocracy as "any form of organization that cuts across normal bureaucratic lines to capture opportunities, solve problems, and get results". For Henry Mintzberg, an adhocracy is a complex and dynamic organizational form. It is different from bureaucracy; like Toffler, Mintzberg considers bureaucracy a thing of the past, and adhocracy one of the future. When done well, adhocracy can be very good at problem solving and innovations and thrives in a diverse environment. It requires sophisticated and often automated technical systems to develop and thrive. Some characteristics of Mintzberg's definition include: highly organic structure little formalization of behavior job specialization not necessarily based on formal training a tendency to group the specialists in functional units for housekeeping purposes but to deploy them in small, market-based project teams to do their work a reliance on liaison devices to encourage mutual adjustment within and between these teams low or no standardization of procedures roles not clearly defined selective decentralization work organization rests on specialized teams power-shifts to specialized teams horizontal job specialization high cost of communication culture based on non-bureaucratic work All members of an organization have the authority within their areas of specialization, and in coordination with other members, to make decisions and to take actions affecting the future of the organization.
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