Self-Managed Organization

Self-Managed Organization: The Future Model of Organizational Management

What Is a Self-Managed Organization?

A self-managed organization is a new approach that replaces traditional hierarchical organizational structures by promoting self-organization and decentralized decision-making. This model emphasizes employees organizing themselves and their teams, taking ownership of organizational management and goal achievement.

Key Features of a Self-Managed Organization

Self-Organization

Self-managed organizations provide employees with extensive opportunities for self-organization. Employees set their own work and goals and manage themselves autonomously.

Decentralized Decision-Making

Decision-making authority is decentralized from centralized management, allowing each employee or team to make decisions regarding their own work.

Role Flexibility

Roles and responsibilities can be flexibly adapted and changed as needed. Employees engage in diverse tasks and leverage various skills.

Transparency and Information Sharing

Information within the organization is shared transparently, enabling employees to understand the organization’s condition and direction in detail.

Collaboration and Coordination

Collaboration and coordination are encouraged, with employees working together on projects and tasks.

Theoretical Background of Self-Managed Organizations

The concept of self-managed organizations is extensively described in the book Reinventing Organizations by organizational scholar Frederic Laloux. Laloux suggests that organizations can evolve through the following developmental stages to become self-managed:

Red: Traditional organizations with centralized authority and control. The purpose is survival and dominance.
Amber: A stage respecting formal authority and discipline, with stable hierarchical structures. The purpose is efficiency and order.
Orange: Emphasizes achievement, competition, and success. The purpose is success and growth.
Green: Focuses on social harmony and empathy, valuing cooperation and compassion. The purpose is empathy and social responsibility.
Teal: The highest stage, where self-organization and collaboration are most important, with the entire organization focusing on self-management and purpose. The purpose is sustainable value and individual growth.

Benefits of Self-Managed Organizations

Faster Decision-Making: Decision-making is decentralized, allowing for swift action.
Transparency and Information Sharing: Transparent information sharing enhances trust and reduces information bias.
Flexibility and Adaptability: Self-managed organizations adapt easily to change and can smoothly introduce new ideas.
Employee Satisfaction: Self-organization and accountability increase employee satisfaction and loyalty to the organization.

Conclusion

Self-managed organizations provide a new approach suggesting an evolution from traditional organizational models by promoting self-organization and decentralized decision-making. Focusing on transparency, flexibility, collaboration, and coordination, employees work more autonomously and enhance the organization’s adaptability. While this model may require cultural and leadership transformation, it holds the potential to build more adaptable, creative, and employee-satisfying organizations.