When the hierarchy folds: how employees may react

Abstract

Purpose

This paper aims to uncover how employees make sense of the implementation of holacracy in their organization.

Design/methodology/approach

Our research is based on a case study of a Swiss SME (of 160 employees) that is about to implement a holacratic mode of governance. Data was collected using questionnaires (completed by 57 employees) and 12 interviews.

Findings

At the level of individual, team and organization, driving forces toward implementing holacracy are stronger than restraining forces.

Practical implications

Implementing holacracy requires careful planning, detailed communications, strong support and training of employees by managers to ensure that they are less fearful of holacracy’s structures and more positive and understanding of its benefits.

Originality/value

This study contributes to a better understanding of holacracy and employees’ sensemaking of the added value of this unconventional structure.

Citation

Audrin, B., Borzillo, S. and Raub, S. (2024), "When the hierarchy folds: how employees may react", Journal of Business Strategy, Vol. 45 No. 2, pp. 98-106. https://doi.org/10.1108/JBS-12-2022-0221