What is Holacracy? Hierarchy?

hi! this is taka
today I'll explain about holacracy and hierarchy.

I think most people have heard "hierarchy", but few people have known holacracy. I have a same opinion. I have sometimes heard hierarchy, but I haven't heard holacracy.

     Hierarchy means structure consisting of some layers. For example, CEO layer, middle management layer and staff layer. In this structure, the order goes from top to down, the power also goes from high to low as the chart that you can see below.

And next, it is holacracy.
Horacracy means that there is no hierarchy structure like middle manager layer and staff layer. But within the division of one layer, there are some groups which have different aspects and each of staff in different groups has power to do decision-making and responsibility. you can see overview as follows.
Compared to "hierarchy", in holacracy structure, power and responsibility are separated.

     I explained two type of structure companies have, but I think there is no better or worse. each of structure has merit and demerit. So, when you built your company, you should consider which structure is suitable for your business, then decide. This is important before starting business.

reference 
https://www.shikumikeiei.com/self-managing-organization/