The Coming Infocracy

Science fiction writers have long used the term "infocracy" to describe a Cyborghian or Gaia society composed of beings that have no concept of self, other than as a component of a functioning community. The term seems to have first been used to describe organizational forms by Zuurmond, who defined it in a government setting as the virtualization of bureaucracy (Zuurmond, 1996). Zuurmond's infocracy describes an organization that appears to have become flat, lean, less hierarchical, more open, and more flexible, but only because its bureaucratic structure, rules, and standards are translated into and enforced by information systems. Zuurmond's infocracy retains a bureaucratic structure.

Clawson popularized another definition of infocracy — a form of organization in which the basis of power is information (Clawson, 1999, 2000). Clawson observes that the industrial revolution generated a shift in the dominant management paradigm from aristocracy to bureaucracy. He suggests the information revolution is spawning a similar shift from bureaucracy to infocracy (see Table 3). In an aristocracy, with power derived from gender and lineage, decisions are made by those entitled to do so by birth. In a bureaucracy, decision-making authority is vested in those at the highest organizational levels; these office holders are assumed to know the most and to be best able to effect wise decisions. In an infocracy, decisions are made by those best equipped to interpret the relevant data, rather than those empowered to make decisions by dint of their positions. Clauson calls the people with the right information and knowledge "node interpreters."

Table 3: Clawson's Management Paradigms
 

Aristocracy

Bureaucracy

Infocracy

Period

Pre Industrial Revolution (18th century and before)

Post Industrial Revolution (19th and 20th centuries)

Information Age (Now and future)

Power source

Gender and lineage

Office and gender

Node Interpreter[a]

Assumption

"Father Knows Best"

"Boss Knows Best"

"Node Interpreter Knows Best"

[a]Node interpreter: Person who has access to relevant and current data and the education and experience necessary to interpret and act upon them

The transition from bureaucracy to infocracy could have significant implications for how organizations operate. For example, Clawson hypothesizes the most effective leadership styles will be those relying on information based persuasion rather than command and control behavior.

Clawson suggests the transition from bureaucracy to infocracy will proceed faster than the move from aristocracy to bureaucracy. Bureaucracies, while designed to control information, are largely structured around the physical assets of the underlying organization. An infocracy has no comparable physical restrictions, which may explain the faster rate of transition. We believe the information-intensive nature of financial services and lessening importance of associated physical assets positions this industry to be an early adopter of infocratic principles.

Clawson was not the first to predict the demise of bureaucracy as an effective management structure. As early as 1966, Bennis had forecast the "coming death of bureaucracy" (Bennis, 1966). Bureaucracies, with their functional divisions, and hierarchical structures, seemed too slow to compete at the speed of information.

Yet, there remains considerable research that affirms the value of bureaucracy in providing direction, structure, stability, and control (Adler, 1999), even in turbulent conditions (Perrow, 1970; Schellenberg & Miller, 1998). Despite predictions to the contrary, identifying any reduction in the bureaucratic structure of today's industry has proved to be devilishly difficult (Collins, 1998).

The internal adoption of and transition to infocratic organizational structures and processes does not ensure market acceptance. Many consumers accept, and perhaps derive assurance from, bureaucratic structure and policy. The movement to infocracy-supported channels and services will require firm investment in new skills for customer-facing employees and the acceptance of new rules of engagement for consumers. Service providers will require training, perhaps even licensing, in a broader set of products. Consumer education must address comfort and trust levels necessary to support increasingly disintermediated single-point-of-contact service encounters. Well-trained, efficient representatives will be needed to accelerate the development of consumer comfort and confidence.



Computing Information Technology. The Human Side
Computing Information Technology: The Human Side
ISBN: 1931777527
EAN: 2147483647
Year: 2003
Pages: 186

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