As opposed to the classic top-down pyramid of power distribution, the business agility model is now picking up pace. According to Mckinsey and company ‘An agile organization comprises a dense network of empowered teams that operate with high standards of alignment, accountability, expertise, transparency, and collaboration. It is the ability of an organization to be able to adapt to market changes swiftly- both internally and externally. The way in which power is distributed within the structure of the organization accounts for internal productivity.
While the old-school companies still hang on to hierarchies, contemporary trends show adaptation of agile and free .
models of organizational structures where the aim is to move away from hierarchical power distribution and towards building a network of competence A lot of times, though the hierarchical structure exists on paper for management purposes, the functions within those structures are free-flowing – a few examples of this could be Microsoft and Spotify. It is not about the way structures are built but more about how they function. This agility based model inclines more towards cooperation instead of competition.
This could end up becoming a boon for ‘genuine talent’ where people can focus on honing skills at work than focusing on climbing the hierarchical ladders, where skills would have more value over mere positions. Assigning people responsibilities depending on their aptitude and interest in given tasks instead of pushing them to work because they belong at a particular position in the organization will level up productivity.
Building agile environments include several challenges, where building accountability deems to be a major factor. It could work smoothly only if the organizations’ goals are clear and the people at the top of the power pyramid gradually distribute the power efficiently. This process would require one to be a mentor rather than a manager.
One of the key ways of delegating responsibilities in this model is understanding who is fit for what job, to understand their inner inclinations. We at traitfit offer a range of customized tests to help you understand your employees’ competencies better from a holistic perspective.
Sarvesh is currently pursuing MSc Psychology (HRDM) at Christ University, Bangalore. He is aspiring to work in the field of organisational development and human resource management. His personal interests include poetry, screenwriting and adventure sports.