Adhocratic Structure

In contrast to formal organisational structure forms discussed above, another form is becoming popular in current external environment of knowledge explosion, rapid advancement in technology with reducing useful life spans and highly cut-throat competitiveness. These are termed adhocratic organisational  form. 

Adhocratic organisation have no entrenched hierarchy, no permanent departments, no formalised rules and procedures. At best it is a central pool of expert talent drawn to innovate and solve the concurrent unique problem. It is a team of area specialists grouped together in a highly flexible form that have few (if any) rules, regulations, procedures or routines. Power and authority flows to any one in the adhocracy depending upon talent and expertise regardless of hist her position. Coordination between team members is through mutual understanding and adjustment. As conditions change, so do the activities, leadership, authority and power. 

The adhocratic organisation is characterised by high horizontal differentiation, low vertical differentiation, low normalisation, high decentralisation, greater flexibility and responsiveness. High horizontal differentiation is due to the fact that the team has predominantly the area experts with a high level of expertise. Vertical differentiation is low because multi-level administration is non-conducive to rapid adaptability to changing situations and the need of supervision is minimal. 

The objective of flexibility demands the absence of normalisation and standardisation. Rules and regulations (if any) tend to be loose and unwritten. Decision making in adhocracy is decentralised, It is necessary for speed and quick response to feedback. Upper level management cannot be expected to process the decision of experts, nor do they have the expertise to do so. Since middle managers supporting staff and operatives, all are professionals with high expertise, the traditional distinction between supervisors, operatives, line and staff becomes blurred. 

The history of adhocracy can be traced back to World War II, i.e. development of task forces. The military created adhoc teams for special tasks which were disbanded soon after task completion. There was no rigid time span for their existence. Rules performed in the team by different members were interchangeable. Depending upon the nature and complexity of mission, the group had the flexibility of division into sub-groups, units and the subunits each responsible for the different aspectstjobs of the combined mission. Even after fifty seven years since World War 11, the relevance of adhoc teams has not diminished. Rather it has increased when it is required that the organisations has to be adaptive, innovative and creative, when individual expert specialists from diverse disciplines are required to collaborate to achieve a common mission and when tasks are highly technical, not programmed, complex and uncertain.