1. Tiffany\'s Tea, an online tea retailer, adopted an organizational structure i
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Question
1. Tiffany's Tea, an online tea retailer, adopted an organizational structure in which job titles are abandoned, traditional managers are eliminated, and authority is distributed to teams. Tiffany, the CEO of the firm, believes that this more fluid structure will allow the company to grow in size and increase its productivity. What is this type of organizational structure called?
a democracy
an autocracy
a tall organization
a holacracy
a broad organization
2. Jamal is a lower-level manager at a men's clothing store in a mall. Jamal's boss trusts him to find new ways to attract customers and compete with other clothing stores in the mall. Because Jamal often walks around the store and the mall, he has developed a good understanding of the store's customers and thus, he is able to react quickly to their changing needs. What type of organization is Jamal's store?
decentralized organization
centralized organization
competitive organization
delegation organization
specialized organization
Explanation / Answer
1. This type of organizational structure is called a holacracy.
Holacracy is a method of decentralized management. It is a self- management practice which is helpful for running goal-oriented companies. Holacracy makes people more powerful by providing them authority to take right decisions in pursuit of their organization's purpose.
In our case, authority is distributed to teams. According to Tiffany if authority is distributed to teams they will work more. Their productivity will increase which in turn increase the revenue of the company. So here the organization structure is holacracy.
2. Jamal's store is decentralized organization.
A decentralized organization is an organization in which most decisions are made by mid-level or lower-level managers. Here head of the company has no role in making most of the decisions.
Jamal is a lower-level manager at a men's clothing store in a mall. Jamal's boss told him to find out new strategies to attract customers. Here Jamal's boss gives Jamal decision power, that means Jamal can take decisions independently to grow the productivity of company. It makes Jamal feel strong enough to provide more efforts to company. So Jamal's store is a decentralized organization.
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