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Teal organization is one that adheres to workers' self-management. The organizational theory term was coined in 2014 by Frederic Laloux in his book Reinventing Organizations . Laloux uses a descriptive model in which he describes different types of organizations in terms of colour, and he cites studies by evolutionary and social psychologists including Jean Gebser, Clare W. Graves, Don Edward Beck, Chris Cowan and Ken Wilber. [1]
Laloux defines a "teal" (a greenish-blue color) organisation as one where the management is based on worker autonomy and peer relationships. [2] He contrasts this to: [1] [3]
The theory of Teal organizations is built on three core concepts: self-management, wholeness, and evolutionary purpose. [2] [3] [4]
Self-management replaces traditional hierarchy with a system where employees manage themselves and collaborate on decisions, distributing authority more evenly.
Wholeness encourages employees to integrate their personal and professional identities, fostering a work environment that prioritizes emotional well-being and authenticity.
Evolutionary purpose sees Teal organizations as living entities that adapt and evolve naturally, guided by their own sense of direction rather than rigid strategic plans or profit motives.
A number of notable organisations around the world have adopted and operate with the Teal organisation model [5] some of which are in the table below:
| Organization | Business, mission, or activity | Office location(s) | Ref. |
|---|---|---|---|
| Morning Star Co. | food processing | United States | [6] |
| Culture Unplugged | Socio-Cultural Activism + Integral Health | Global, since 2007 | "Socio-Cultural Mission". cultureunplugged.com. Culture Unplugged Studios. |
| Raise | Recruitment Services | international | Website |
| Patagonia | apparel | United States | |
| Sounds True | media | United States | |
| AES | energy sector | international | |
| Buurtzorg | health care | Netherlands | |
| ESBZ | K–12 school | Germany | |
| Hatmill | Supply chain and logistics management consultancy | UK | |
| Heiligenfeld | mental health hospitals | Germany | |
| Nucor | steel manufacturing | international | |
| Varkey Foundation | non-profit with expertise in Education | international | |
| Thomsen Trampedach | brand protection | Denmark | [7] |
Industrial and organizational psychology "focuses the lens of psychological science on a key aspect of human life, namely, their work lives. In general, the goals of I-O psychology are to better understand and optimize the effectiveness, health, and well-being of both individuals and organizations." It is an applied discipline within psychology and is an international profession. I-O psychology is also known as occupational psychology in the United Kingdom, organisational psychology in Australia and New Zealand, and work and organizational (WO) psychology throughout Europe and Brazil. Industrial, work, and organizational (IWO) psychology is the broader, more global term for the science and profession.
Work design is an area of research and practice within industrial and organizational psychology, and is concerned with the "content and organization of one's work tasks, activities, relationships, and responsibilities" (p. 662). Research has demonstrated that work design has important implications for individual employees, teams, organisations, and society.
Organizational theory refers to a series of interrelated concepts that involve the sociological study of the structures and operations of formal social organizations. Organizational theory also seeks to explain how interrelated units of organization either connect or do not connect with each other. Organizational theory also concerns understanding how groups of individuals behave, which may differ from the behavior of an individual. The behavior organizational theory often focuses on is goal-directed. Organizational theory covers both intra-organizational and inter-organizational fields of study.
An organizational structure defines how activities such as task allocation, coordination, and supervision are directed toward the achievement of organizational aims.
Theory X and Theory Y are theories of human work motivation and management. They were created by Douglas McGregor while he was working at the MIT Sloan School of Management in the 1950s, and developed further in the 1960s. McGregor's work was rooted in motivation theory alongside the works of Abraham Maslow, who created the hierarchy of needs. The two theories proposed by McGregor describe contrasting models of workforce motivation applied by managers in human resource management, organizational behavior, organizational communication and organizational development. Theory X explains the importance of heightened supervision, external rewards, and penalties, while Theory Y highlights the motivating role of job satisfaction and encourages workers to approach tasks without direct supervision. Management use of Theory X and Theory Y can affect employee motivation and productivity in different ways, and managers may choose to implement strategies from both theories into their practices.
Organizational behavior or organisational behaviour is the "study of human behavior in organizational settings, the interface between human behavior and the organization, and the organization itself". Organizational behavioral research can be categorized in at least three ways:
The theory of the firm consists of a number of economic theories that explain and predict the nature of the firm, company, or corporation, including its existence, behaviour, structure, and relationship to the market. Firms are key drivers in economics, providing goods and services in return for monetary payments and rewards. Organisational structure, incentives, employee productivity, and information all influence the successful operation of a firm in the economy and within itself. As such major economic theories such as transaction cost theory, managerial economics and behavioural theory of the firm will allow for an in-depth analysis on various firm and management types.
A term created by Tom Burns and G.M. Stalker in the late 1950s, organic organizations (Organic system theory), unlike mechanistic organizations (also coined by Burns and Stalker), are flexible and value external knowledge. The theories of Burns and Stalker impacted the field of organization theory, with their study of management and structure of Scottish electronics firms. In their writing contrasting mechanistic and organismic structures, they outlined the differences between the two types.
Sociocracy is a theory of governance that seeks to create psychologically safe environments and productive organizations. It draws on the use of consent, rather than majority voting, in discussion and decision-making by people who have a shared goal or work process.
A flat organization is an organizational structure with few or no levels of middle management between staff and executives. An organizational structure refers to the nature of the distribution of the units and positions within it, and also to the nature of the relationships among those units and positions. Tall and flat organizations differ based on how many levels of management are present in the organization and how much control managers are endowed with.
Complexity theory and organizations, also called complexity strategy or complex adaptive organizations, is the use of the study of complexity systems in the field of strategic management and organizational studies. It draws from research in the natural sciences that examines uncertainty and non-linearity. Complexity theory emphasizes interactions and the accompanying feedback loops that constantly change systems. While it proposes that systems are unpredictable, they are also constrained by order-generating rules.
Biological organisation is the organisation of complex biological structures and systems that define life using a reductionistic approach. The traditional hierarchy, as detailed below, extends from atoms to biospheres. The higher levels of this scheme are often referred to as an ecological organisation concept, or as the field, hierarchical ecology.
A glossary of terms relating to systems theory.
A network-centric organization is a network governance pattern which empowers knowledge workers to create and leverage information to increase competitive advantage through the collaboration of small and agile self-directed teams. It is emerging in many progressive 21st century enterprises. This implies new ways of working, with consequences for the enterprise’s infrastructure, processes, people and culture.
Compensation and benefits refer to remuneration to employees from employers. Which is the payments or rewards provided to an individual for the work that has been completed.
Text and conversation is a theory in the field of organizational communication illustrating how communication makes up an organization. In the theory's simplest explanation, an organization is created and defined by communication. Communication "is" the organization and the organization exists because communication takes place. The theory is built on the notion, an organization is not seen as a physical unit holding communication. Text and conversation theory puts communication processes at the heart of organizational communication and postulates, an organization doesn't contain communication as a "causal influence", but is formed by the communication within. This theory is not intended for direct application, but rather to explain how communication exists. The theory provides a framework for better understanding organizational communication.
High-commitment management is a management style that aims to emphasize the personal responsibility, independence, and empowerment of employees at all levels of an organization, rather than focusing on higher-level authority figures. It aims to maintain high levels of commitment by preserving initiative among management personnel.
Holacracy is a method of decentralized management and organizational governance, which claims to distribute authority and decision-making through a holarchy of self-organizing teams rather than being vested in a management hierarchy. Holacracy has been adopted by for-profit and non-profit organizations in several countries. This can be seen as a greater movement within organisational design to cope with increasing complex social environments, that promises a greater degree of transparency, effectiveness and agility.
The term liberated company, popularized by the book Freedom, Inc. by Brian M. Carney and Isaac Getz, refers to an organization which, according to the authors, unleashes employees' initiative and responsibility by treating them as adults.
Reinventing Organizations: A Guide to Creating Organizations Inspired by the Next Stage of Human Consciousness is a book written by Frédéric Laloux and published in 2014. It lists the different paradigms of the human organizations through the ages and proposes a new one: Teal organisation. The latter is built on three pillars related to wholeness, self-management, and evolutionary purpose.
