Type 2 organisations are those that use a decentralised approach, empowering employees to make decisions and take responsibility for their work. This approach is seen as a more modern and progressive way of operating, contrasting with the traditional hierarchical structure of Type 1 organisations.
Type 2 organisations are characterised by a flat structure, where power and decision-making capability are distributed throughout the company. They operate on the basis of trust, transparency, and open communication. Employees are encouraged to take ownership of their tasks, leading to increased motivation, creativity, and productivity.
These organisations also tend to be more adaptable and responsive to change, as decisions can be made quickly and without the need for approval from higher-ups. They foster a culture of continuous learning and improvement, where mistakes are viewed as opportunities for growth rather than failures.
However, transitioning from a Type 1 to a Type 2 organisation can be challenging. It requires a shift in mindset and culture, and may meet with resistance from those accustomed to traditional ways of working. Despite these challenges, the benefits of becoming a Type 2 organisation are substantial, including increased employee satisfaction, improved productivity, and the ability to adapt quickly to changing market conditions.
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