Get rid of bosses to create an equal working environment
A new kind of organizational structure, dubbed Decentralized Autonomous Organization, aims to revolutionize the way companies work. DAO aims to do away with workplace hierarchy i.e. no place for CEO, CFO or VPs. It steers away from "command and control" structure that we are so used to and that's what makes it interesting. Let us look at how it works.
What is it all about?
The DAO founders have set up the basic rules of governance, which the employees are supposed to follow. It basically is a combination of blockchain, smart contracts, computer codes and people working together. DAO has stakeholders in the company who have tokens that represent their shares in the performance of the company. Increase in the value of tokens means profit for them.
How does it work?
The stakeholders have the right to vote their approval or denial of proposals. Once a proposal is submitted, it is discussed among the stakeholders and members of the community, and voted upon for the work to commence. Instead of hiring employees the company works on a hired-on-a-project basis, which means the company has the flexibility to hire the right person for the right project.
How will it change the future of companies?
In other companies, the higher authorities possess the power of firing or hiring people depending on their performance. However, often office politics lead to unequal treatment of employees. DAO ensures quality of work and more importantly equality among all the workers.
Is this what the future companies would opt for?
In DAO when a person misses a deadline or does not adhere to the budget, the stakeholders withdraw their votes and his/her project ultimately fails. The project-based model of DAO ensures flexibility and comfort, which leads to better performance. The expulsion of hierarchy also ensures a free flow of idea, which results in more innovation due to the lack of interference from higher authorities.
Leaders killing the innovation buzz at workplace
The founder of innovation consultancy Inventium, Dr. Amantha Imber opines that the stifling of ideas at the workplace because of the rigid hierarchical structures, is leading to lesser innovations. She suggests that higher officials should adopt techniques, which give the employees a challenge, help them embrace failure in a positive sense and encourage experimentation in order to include innovations.
Flipkart lets an employee to become CEO for a day
On the occasion of the 10th-anniversary celebration of Flipkart, it has started a competition which would let one employee to become the CEO of the company for a day. This stance aims to familiarize the employees with various structures of work and introduce them to the challenges that the higher officials face.