The circular organization chart: a model for work motivation

A circular organization chart is an alternative to the standard hierarchical system. In it, the first thing you will see is the most important figure located in the center—the client—and, around him, a harmonious distribution of different work teams. In these organizations, human relations, collaboration and a goal-oriented joint effort are prioritized.

The progressive appearance of this type of structures is due to an undoubted factor. Traditional companies dampen employee motivation, Because they are rigid spaces where creativity or that commitment to performance with which challenges are faced do not always flourish. The change was necessary. In the following reading we describe the characteristics of these new systems.

Circular organizational chart: what it is and how it differs from the traditional one

It is important to start by detailing what an organization chart is. Well, this corresponds to a diagram or scheme that collects information about the organizational hierarchy of a company.

As described in an article in Procedia, social and behavioral sciences, Organization charts are the manifestation of systemic thinking, as well as the relationships, responsibilities and elements that make it up.. Within the different typologies that exist, the concentric has acquired great importance in the organizational market.

In this regard, it is worth highlighting that A circular organizational chart is a business structure in which hierarchies are avoided and collaboration is emphasized.. The levels go from the center outwards and confidence and self-management are valued. Let’s know more aspects.

Characteristics that define it

The first person to design an organization chart was railroad engineer Daniel McCallum in 1855. He created the classic top-down hierarchical structure. That is, the most powerful figures at the top and the employees at the base. Now, at present The circular organizational chart that promotes intradepartmental collaboration is on the risewhich is characterized by the following:

Relationships between all members are prioritized. In many companies, this central figure symbolizes the customer. In others, there is the leader or the decision-making body. The hierarchical levels are distributed in circles around the central point. The aim is to promote equality and collaboration among company members. Employees in the outer circles have as much autonomy as the leaders themselves. The circular organization chart focuses on the importance of interdisciplinary work groups. Decision making is shared and encouraged open communication between all teams. It has a flexible organization that allows rapid reaction and adaptation to changes in the company. There is a holistic vision: all departments or teams are interconnected and contribute to the common objective.

Advantages over hierarchical or vertical organization charts

As you know, The organizational charts that have dominated the world of work for many years are vertical ones.. That is, that pyramidal hierarchical configuration, at the top of which the highest authority is located. These types of structures are not only being replaced because they do not always bring with them motivation or high productivity. There are other aspects that motivate the change.

An article in the magazine Social Sciences describes, for example, cases of harassment or abusive behavior sometimes derived from these axes of business verticality. Currently, Many directors and managers focus on circular hierarchies because of the advantages they provide.. We describe them to you:

Greater collaboration: The concentric organizational chart promotes a collaborative environment by eliminating traditional hierarchical rigidity. In this context, employees feel more inclined to work as a team and share ideas. Such an approach enhances creativity and problem solving.Open communication: By reducing the distance between hierarchical levels, this type of organization chart facilitates direct and open communication between workers and leaders. In this way, general needs are known and addressed more quickly, which increases commitment in the organization itself, as well as satisfaction.Organizational agility: The circular structure is flexible and adaptable. The members of a company reorganize themselves better in the face of any challenge and act quickly and effectively when faced with changes in the environment.Most productive teams: This structural model focuses on the creation of interdisciplinary teams and joint projects, rather than individual departments. This facilitates collaboration between different areas and, of course, overall performance itself.Adaptation to the digital age: In a world where information flows every second, the concentric organization chart is ideal to respond to that environment on-line where there are always great opportunities to attend to.

How does it influence work motivation?

Collaboration is the central axis that dominates the business and production market today. An example of this is what is described in an article in the Journal of innovation & knowledge regarding the automotive industry, where there are dynamics in which different startups They come together to bring innovation. As it is, this is a booming model today.

A circular organizational chart is based on those same collaborative relationships that empower all teams. This joint work in which hierarchies fall to work in equality adds an undoubted motivational component. There are many companies that apply it for this last reason. We give you some examples:

Semco: is a marine manufacturing company from Brazil. With this organizational chart, employees feel greater confidence in the organization because they start from a position of equality. Furthermore, with greater commitment to objectives, productivity increases.Zappos: This famous footwear and clothing e-commerce company, owned by Amazon, applies a circular internal structure that they define as holacracy. In it, traditional hierarchy is eliminated to encourage self-regulation and shared problem solving. This promotes not only overall motivation, but also talent retention.Buffer: I’m sure you’ve heard of this one. startup. It specializes in social media management and is known for having a transparent circular organizational structure. They are also characterized by making decisions based on collaboration, including those related to salary.

Disadvantages of the concentric organization chart

Although the circular organization chart has several advantages, it is important to qualify some aspects. The first is that it is not suitable for all organizations. Therefore, The choice between a circular and a vertical structure depends on the culture and specific needs of each company, in addition to its market and competition.

Likewise, there are some disadvantages or problems in its application that every director or manager must take into account when applying it. They are small aspects that, more than limitations, correspond to areas that require greater attention and internal work. We share them with you:

Difficulties of application in very large companies. A confusion of roles and responsibilities may appear. Sometimes, a lack of clear leadership arises in the company. It is difficult to coordinate each of the tasks of the teams. If there are many people, decision-making Decisions become slow and inefficient. Communication problems exist if the appropriate tools are not used.

The organizational chart of a company, the axis of its operation

Nowadays there are many companies and startups that have adopted a concentric or circular organization chart. They are, in general, organizations that want to innovate and adjust to a challenging and competitive context. Therefore, if you are an entrepreneur and are thinking about taking the step, it will help you to read the book Principle-based Organizational Structure (2017), by Dean Meyer.

This work explains which hierarchical structure is the most appropriate according to the characteristics of your company. Without a doubt, those that have a collaborative approach are the axis that now moves a significant part of the most avant-garde productive market. Nevertheless, Applying this model requires effort and excellent coordination of the entire human team.. The investment is worth it.

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