2 - Transformation of Organizational Formats

Question 1

main challenges of the 21st Century

Answer 1

VUCA:

• volatile
• uncertain
• complex
• ambiguous

Planetary:

• man made 6th extinction
• created autonomous machines that may learn to outperform us in any intellectual or physical task

Question 2

goal

Answer 2

create sustainable businesses that develop the well being of all of us while respecting the limits of the planet (50+20 agenda)

Question 3

examples of positive business action

Answer 3

B corporation (B the change) - certify companies that meet high standards of social and environmental performance, accountability + transparency

Business Roundtable redefines purpose of corporation - moves away from shareholder primacy, includes commitment to all stakeholders (signed by 181 CEOs)

Question 4

dominant organizational model

Answer 4

only has 1 social responsibility goal – to use its resources and engage in activities designed to increase its profits

Question 5

red (impulsive) organizations

Answer 5

• egocentric short-term perspective
• highly opportunistic
• runs on fear
• no hierarchy
• thrive in chaotic environments

ex: organized crime, street gangs…

Question 6

amber (conformist) organizations

Answer 6

• ethnocentric medium-long term perspective
• fixed formal hierarchy
• replicable processes
• change is viewed w/ suspicion

ex: military, catholic church…

Question 7

orange (achievement) organization

Answer 7

• world centric perspective
• materialistic obsession + corporate greed
• meritocratic hierarchy
• breakthroughs: innovation + meritocracy + accountability

ex: multinational companies, investment banks…

Question 8

green (pluralistic) organization

Answer 8

• stakeholders replace shareholders as primary purpose
• meritocratic hierarchy
• seeks fairness + empowerment
• self-management

ex: social workers, non-profits…

Question 9

teal (evolutionary) organization

Answer 9

organizations are seen as living entities oriented towards realizing their potential

• evolutionary purpose
• self-management (holacracy)

Question 10

holacracy

Answer 10

organizational operating model as a result of dissatisfaction w/ the traditional dominant practices

• focus on empowerment + wholeness

Question 11

dominant model vs holacracy

Answer 11

structure: hierarchical pyramid vs self organized teams

staff functions: excess staff functions vs teams

coordination: fixed meetings & overload vs coordination & ad hoc meetings
projects: heavy machinery & complexity vs simplified project management
purpose: self-preservation against competitors vs embracing competitors to pursue purpose

Question 12

which organizational model are we heading to?

Answer 12

from traditional bureaucracy to the digital bureaucracy

• digital platforms that allow workers to be controlled by algorithms

Question 13

digital bureaucracy

Answer 13

convey an image of non-hierarchical organizations where workers are collaborators (ex: uber)

• no need to give orders

Question 14

issues w/ digital bureaucracy

Answer 14

• no barriers of entrance
• workers have no protection, insurances or qualifications traditionally required
• do not respect the national legislations of labour given their transnational character

Question 15

components of self management (holacracy)

Answer 15

• transparency
• no hierarchy
• self-managing teams
• no privileges
• salary balance
• no controls
• measure + track everything
• shared decision-making
• no layoffs
• profit share