Turnover and Recommendation Intentions in the Post-Implementation Period of Radical Decentralization

Abstract

Radical Decentralization (RD) is a form of self-management where the authority and decision-making relationship between manager and subordinate is eliminated. A popular RD structure is Holacracy, which pushes decision-making down to the individual employee level. We examined Holacracy adoption within a Canadian technology with 445 employees using a mixed-methods design. We found that the perceived efficacy of RD was contingent on the extent that employees felt there was authentic leadership, efficient administration, role clarity, and role accountability. Perceived efficacy of RD positively predicted employee motivation, which facilitated lower turnover intentions and intent to recommend the organization to others.