UPSC MainsPSYCHOLOGY-PAPER-II202015 Marks
Q7.

Organizations of the future will be organic-adaptive structures but temporary systems." Discuss how Warren Bennis characterises the new form of organization.

How to Approach

This question requires a detailed understanding of Warren Bennis’s perspective on organizational evolution. The answer should focus on how he contrasts traditional bureaucratic structures with the emerging ‘organic-adaptive’ and ‘temporary systems’ models. Key areas to cover include the characteristics of these new organizational forms, the drivers behind their emergence (like rapid technological change and globalization), and the implications for management and leadership. Structure the answer by first defining Bennis’s core concepts, then elaborating on the features of each organizational type, and finally, discussing the interplay between them.

Model Answer

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Introduction

The 21st century has witnessed unprecedented changes in the business environment, driven by globalization, technological advancements, and increasing complexity. Warren Bennis, a renowned organizational theorist, predicted this shift, arguing that traditional hierarchical organizations were becoming increasingly inadequate. He posited that future organizations would be characterized by ‘organic-adaptive structures’ capable of responding swiftly to change, yet operate as ‘temporary systems’ – fluid, project-based entities formed for specific purposes. This signifies a move away from rigid, control-oriented models towards more flexible, collaborative, and decentralized approaches to organizational design. Understanding Bennis’s characterization is crucial for comprehending the evolving landscape of public and private administration.

Warren Bennis’s Characterization of New Organizational Forms

Warren Bennis, in his work on leadership and organizational change, foresaw a fundamental shift in how organizations operate. He identified two key characteristics of the future organization: the ‘organic-adaptive structure’ and the ‘temporary system.’ These aren’t mutually exclusive but rather represent different facets of the same evolving organizational paradigm.

1. Organic-Adaptive Structures

Bennis contrasted traditional ‘mechanistic’ organizations – characterized by rigid hierarchies, centralized decision-making, and specialized tasks – with ‘organic’ structures. Organic structures are:

  • Decentralized: Decision-making authority is distributed throughout the organization, empowering employees at all levels.
  • Flexible: They are adaptable and can quickly respond to changing circumstances. This is achieved through loose control mechanisms and a focus on collaboration.
  • Networked: They rely on strong internal and external networks for information sharing and resource allocation.
  • Knowledge-Based: Emphasis is placed on the collective knowledge and expertise of employees, rather than hierarchical authority.
  • Customer-Centric: They are designed to be responsive to customer needs and preferences.

This structure is designed to foster innovation and agility. Bennis argued that in a rapidly changing world, organizations needed to be able to learn and adapt continuously, and this required a more flexible and decentralized structure.

2. Temporary Systems (The Boundaryless Organization)

Bennis further elaborated on the concept of ‘temporary systems,’ which are essentially project-based organizations formed for a specific purpose and dissolved once that purpose is achieved. These systems are:

  • Project-Based: They are assembled around specific projects or initiatives.
  • Cross-Functional: They bring together individuals from different departments and disciplines.
  • Fluid: Membership is dynamic, with individuals moving between projects as needed.
  • Focused on Outcomes: They are driven by clear goals and measurable results.
  • Boundaryless: They often transcend traditional organizational boundaries, collaborating with external partners and stakeholders.

This concept aligns with the idea of the ‘boundaryless organization’ popularized by Jack Welch at General Electric in the 1990s. The rise of matrix structures, virtual teams, and strategic alliances are all manifestations of this trend. Bennis believed that these temporary systems would become increasingly prevalent as organizations sought to leverage specialized expertise and respond quickly to market opportunities.

The Interplay Between Organic-Adaptive Structures and Temporary Systems

Bennis didn’t see these two forms as competing models but rather as complementary. The organic-adaptive structure provides the underlying framework for flexibility and innovation, while temporary systems are the specific vehicles for implementing change and achieving strategic goals. An organization might maintain a relatively stable organic structure but constantly form and dissolve temporary systems to address specific challenges or opportunities.

Drivers of Change

Several factors contributed to the need for these new organizational forms, as identified by Bennis and others:

  • Rapid Technological Change: The pace of technological innovation requires organizations to be agile and adaptable.
  • Globalization: Increased competition and interconnectedness demand greater responsiveness and collaboration.
  • Knowledge Economy: The growing importance of knowledge and expertise necessitates decentralized decision-making and employee empowerment.
  • Changing Workforce Expectations: Employees increasingly seek autonomy, flexibility, and opportunities for growth.

Implications for Management and Leadership

Bennis argued that these new organizational forms require a different style of leadership. Traditional command-and-control leadership is ineffective in organic-adaptive structures and temporary systems. Instead, leaders must be:

  • Facilitators: They must create an environment that fosters collaboration and innovation.
  • Empowerers: They must delegate authority and empower employees to make decisions.
  • Visionaries: They must articulate a clear vision and inspire others to achieve it.
  • Learners: They must be open to new ideas and willing to learn from their mistakes.

Conclusion

Warren Bennis’s characterization of future organizations as organic-adaptive structures operating through temporary systems remains remarkably relevant today. The increasing volatility, uncertainty, complexity, and ambiguity (VUCA) of the modern world demands organizations that are flexible, resilient, and capable of continuous learning. While implementing these models presents challenges – including managing ambiguity and fostering trust – the potential benefits in terms of innovation, agility, and competitiveness are significant. The shift towards these organizational forms represents a fundamental change in the way work is organized and managed, requiring a new breed of leaders and a new approach to organizational design.

Answer Length

This is a comprehensive model answer for learning purposes and may exceed the word limit. In the exam, always adhere to the prescribed word count.

Additional Resources

Key Definitions

Mechanistic Organization
A traditional organizational structure characterized by a rigid hierarchy, centralized decision-making, specialized tasks, and formal rules and procedures. Often associated with bureaucratic models.
VUCA
An acronym standing for Volatility, Uncertainty, Complexity, and Ambiguity, used to describe the nature of the modern business environment.

Key Statistics

According to a 2023 Deloitte survey, 88% of executives believe organizational agility is a top priority, but only 20% feel their organizations are highly agile.

Source: Deloitte, "The State of Agile 2023"

A study by McKinsey found that organizations with highly agile structures are 30% more likely to outperform their peers in terms of revenue growth.

Source: McKinsey, "The Agile Organization"

Examples

Valve Corporation

Valve, the video game developer, is often cited as an example of an organization that operates largely as a ‘temporary system.’ Employees are free to join and leave projects as they choose, and there is no traditional management hierarchy. This flat structure has fostered innovation and creativity.

Frequently Asked Questions

How do organizations balance the need for stability with the flexibility of temporary systems?

Organizations can maintain a core of stable functions (like finance and HR) while using temporary systems for project-based work. Strong communication and coordination mechanisms are also essential to ensure alignment and avoid duplication of effort.

Topics Covered

Public AdministrationManagementOrganizational TheoryChange ManagementLeadership