An alternative to hierarchy, more adaptable to rapid social change, more responsive to individual needs and closer to the democratic ideal. The cluster organisation Groups of people in an organisation are arranged like grapes growing on a common vine. British Petroleum, General Electric Canada. Often called neoconglomerates . The network organisation Disaggregate major functions into separate companies e.g.
Strategic alliances are also a form of adhocracy.
The adaptive organisation probably offers the best opportunity for the organisation to meet the two basic and often contradictory requirements of maintenance and change . There must always be a tendency towards systematic, coherent, efficient organisation if the firm's existing goals are to be achieved and if the complex of relationships is to be held together. There must always be a tendency towards a state of equilibrium. At the same time there must always be a tendency towards a breakup of existing relationship and the formation of new ones because of the intrusion of unavoidable environmental changes and the firm's purposiveness with respect to them.