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The Future of HR: Slaying Your Company’s Org Debt Monster
At Work with The Ready
Chaotic (Power) v.s. Bureaucratic Org Debt
Organizational debt manifests in two forms: chaotic and bureaucratic. Chaotic organizational debt arises from a lack of clarity which leads to repetitive, inefficient processes where decisions require excessive conversation and alignment. This type of debt is linked to power dynamics, where individuals may maintain their importance by controlling the chaotic decision-making process. On the other hand, bureaucratic organizational debt stems from the absence of documented workflows and clarified authority, resulting in inefficiencies each time a task is performed. Both types of debt incur significant costs, but bureaucratic debt is often more challenging to eliminate due to its deep connections with individuals' roles and power within the organization. The resolution of these issues could threaten the status of those who currently manage the chaos.
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