Modern business organisations are described as oligarchies, where power is concentrated in the hands of a few, often leading to detrimental consequences such as stifling innovation and perpetuating inequality. The hierarchical structure of businesses, where decisions are made by a small group of executives, is criticised for being outdated and inefficient. This model is contrasted with the more democratic, networked approach, which is seen as more agile and innovative.
Employee engagement is identified as a key issue, with the majority of workers reportedly disengaged from their work. This disengagement is linked to the hierarchical structure, as employees feel they have little say in decision-making processes. The solution proposed is to give employees more autonomy, encouraging innovation and engagement.
The concept of ‘organisational plasticity’ is introduced, referring to the ability of an organisation to adapt and change in response to external factors. Oligarchic businesses are seen as lacking this plasticity, as their rigid structure inhibits their ability to adapt. The article advocates for a shift towards more democratic, networked organisations, which are seen as better equipped to deal with the challenges of the modern world.
The piece concludes by emphasising the need for a radical transformation of business organisations, moving away from oligarchies towards more democratic, networked structures. This is seen as essential for businesses to thrive in the modern world, fostering innovation, engagement and organisational plasticity.
Go to source article: https://workfutures.io/today-s-business-organization-is-an-oligarchy-and-that-needs-to-change-17af726c46d0#.3jkkjs7pa