Overview
Requisite organization (RO) is a term and methodology developed by Elliott Jaques and Kathryn Cason as a result of the research in stratified systems theory, general theory of bureaucracy, work complexity and human capability over 60 years.
Requisite organization is the system of business organization that aims for effective managerial organization and managerial leadership, based on the systematic application of scientific research about the nature of work and the nature of individual's capacity for work.
Definition
According to Jaques, "the term requisite organization means doing business with efficiency and competitiveness, and the release of human imagination, trust, and satisfaction in work."
Requisite organization is a system designed to get work done with effectiveness in producing valued goods and services to satisfy public needs and at the same time achieving the positive bottom line for the business by means of specialization of functions within vertical stratified and hierarchical organization that is referred to by Dr. Elliott Jaques as Managerial Accountability Hierarchy:
Work outputs are continuously produced by process movement across vertical functions of work.
Work and accountability for bottom line achievement cascade down successive levels and strata and a system of organizational layers or strata of bottom line generation units is formed.
Managers hold immediate subordinates accountable for their own personal effectiveness in getting work done and for the output of their subordinates.
Requisite organization is a triple bottom line management methodology which uncovers dysfunctional aspects of strategy, systems, structures, staff and then realigns them to fit the required complexity of the business with the purpose to increase and sustain maximum economic value.
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