What type of organizational structure includes a hierarchy but allows for distributed decision-making?

Holacracy is a form of organizational structure that combines a hierarchical element with the empowerment of individuals through distributed decision-making. In a holacracy, the traditional top-down management structure is replaced with a system where teams, known as circles, have the autonomy to make decisions relevant to their areas of responsibility. This allows for agility and responsiveness, enabling organizations to adapt quickly to changes.

The essence of holacracy lies in its emphasis on roles rather than traditional job titles, allowing members to take on various responsibilities and make decisions without the need for approval from higher-ups. This structure fosters collaboration and innovation, as employees are encouraged to take ownership and contribute to the strategic goals of the organization.

Other organizational structures, such as matrix and flat structures, do have some decentralized elements but do not provide the same level of role clarity and autonomy that defines a holacracy. In contrast, a traditional hierarchy tends to maintain strict control with centralized decision-making, which does not align with the idea of distributed authority seen in holacratic systems.