Organization

Abstract

The hierarchical pyramid is still the form of organizational structure that predominates in theory and praxis. However, its weaknesses, in particular the emergence of departmental silos or excessive isolation from the environment, are also much discussed. As always, organizational decisions and strategic decisions influence and condition each other. Companies that allow emergent strategies or even recognize their competitive advantage in them must therefore also have the ability to make rapid and unplanned organizational changes. One solution is the concept of two operating systems, the other is the paradigm shift toward a fractal organization. They are considered to be the most likely to operate successfully in the changed conditions of the (digital) possibility space. Self-controlling, only loosely coupled organizational units are the backbone of fractal organizations. In them, the heterarchical structural principle dominates, while the few hierarchical elements have at best a supplementary, stabilizing function. Fractal organizations are basically to be regarded as communication-centered, with regard to two challenges: First, it is important to support the process of self-direction. On the other hand, fractal organizations require a strong normative framework which gives the largely hierarchy-free decision-making and negotiation processes the necessary identity-forming framework for action.