What type of organizational approach empowers teams to function independently while still being part of a larger structure?

The holacracy organizational structure is designed to give teams a significant level of autonomy and empowerment while maintaining a cohesive framework within the larger organization. In this model, traditional management hierarchies are replaced with a system of self-organizing teams or circles that have defined roles and responsibilities. Each team can make decisions swiftly and respond to changes in the environment without needing extensive oversight from higher management, which fosters innovation and efficiency.

This structure contrasts with other approaches like functional arrangements, which typically see departments that operate under strict hierarchical management with lesser independence. Similarly, divisional arrangements may lead to teams working in silos with limited interaction, and flat structures might encourage collaboration but can lack the defined roles that holacracy provides. Overall, holacracy balances independence and structure, making it particularly effective for organizations aiming to be agile and responsive.