There are various forms of organizational management, including hierarchical and managerial organizations. Among them, a new organizational form that has been attracting attention in recent years is the “autonomous organization.
There are advantages and disadvantages to the autonomous organization, and it is necessary to understand these before deciding whether to introduce it in your company.
In this article, I will explain what autonomous organizations are, the background behind the attention they are receiving, the advantages and disadvantages of introducing them, and the points to keep in mind in order to realize them.
A New Organizational Form: The Autonomous Organization
What is an autonomous organization? What is an autonomous organization?
Autonomous organization refers to an organizational system in which power and decision-making discretion are decentralized, unlike conventional hierarchical organizations.
In a hierarchical or managerial organization, decisions and judgments are made top-down, and the organizational form is one in which subordinates follow the instructions of superiors.
On the other hand, autonomous organizations are characterized by their ability to make optimal decisions and actions based on the judgment of teams, individuals, and other sites because the rules for decision making are clear.
As an autonomous organization, there is the “teal organization” where the top management can act toward the vision without micromanaging.
Another typical example is the “holacracy organization,” which operates with a flat relationship that removes hierarchical relationships.
Why are autonomous organizations attracting attention?
One of the reasons why autonomous organizations are attracting attention is because of changes in the business world, such as the spread of the Internet and the decline in the working population due to the declining birthrate and aging population in Japan.
Companies need to respond to these drastic changes by diversifying work styles and enhancing work-life balance.
In an autonomous organization, decision-making is faster than in a hierarchical organization, and it is easier to respond to changes in the times because decisions and actions can be made at the discretion of the frontline.
In addition, the fact that employees are encouraged to think and act on their own is probably one of the reasons why autonomous organizations are attracting so much attention.
Advantages and disadvantages of autonomous organizations
While autonomous organizations have a variety of advantages, they also have some disadvantages.
By understanding both, it is possible to consider how to deal with the disadvantages, so if you are aiming for an autonomous organization, it is a good idea to check the disadvantages as well as the advantages.
Main advantages of an autonomous organization
The main advantage of an autonomous organization is that it eliminates the need to wait for top-down decision-making and instructions, and thus improves the decision-making speed of teams and individuals.
In addition, employees will be able to fully demonstrate their individuality and qualities because they will be able to think and work on their own without waiting for instructions.
As a result, this will lead to the creation of new ideas and an increase in the speed of work progress in the field, which will also help to increase the profits of the company as a whole.
Main disadvantages of autonomous organizations
The main disadvantage of autonomous organizations is that it is difficult to centralize information.
In a hierarchical organization where decisions are made from the top down, information is centralized at the top where decisions are made, while in an autonomous organization it tends to be dispersed.
In addition, each team has a different personnel evaluation system and standards, so evaluations tend to be uneven.
Key points for realizing an autonomous organization
In order to realize an autonomous organization, there are two main points. There are two main points to realizing an autonomous organization: “penetration of vision” and “introduction of a system to unify information and personnel evaluation standards.
In this section, I will explain the importance and benefits of these two points, which are essential for realizing an autonomous organization.
The key is “penetration of the vision”
One of the keys to realizing an autonomous organization is the penetration of vision.
In order to realize an autonomous organization, the first step is to make the company’s way of thinking and the direction it aims to take in the future known and understood by all employees.
If each and every employee has an accurate understanding of the company’s vision, scope of action and guidelines, it is easy to make decisions with some degree of unity even if decision making is dispersed.
It is important to disseminate the vision as a guideline to guide the direction of the company, for example by incorporating the company’s goal setting into the team and employees.
Goalous supports an autonomous organization
The SNS-type goal management tool Goalous will help to promote employee autonomy and vision.
Goalous utilizes unique goal and message functions.
The reason for this is that Goalous can utilize its own goal and message functions, making it easier to visualize team goals and progress.
The goals set by employees and teams can be seen at a glance, making it easier for top management to grasp the status and information.
In addition, since employees can communicate their activities through Photo Action, sharing of activities among members is also smooth.
In addition, from the activity records, it is possible to check what approach was taken toward the goal along with the achievement status, which is useful for unifying personnel evaluation standards.
As it becomes easier to grasp whether all employees are taking action toward the goal, it is also easier to unify information, which is an issue for autonomous organizations.
As a result, it will be easier to disseminate the company’s vision and help realize an autonomous organization.
Also, Goalous. Colorkrew also holds free seminars that are useful for organizational management and administration.
Colorkrew also holds free seminars that are useful for organizational management and administration. We hope that you will find these useful as hints when considering how to spread your vision to realize an autonomous organization.
Realizing an autonomous organization is not something that can be done overnight. It requires a comprehensive internal effort to design systems, introduce tools to improve the environment, and make the vision known to employees.
You should clearly communicate to your employees what kind of internal culture and work style you want to achieve by realizing an autonomous organization.