Adhocracy is a flexible, adaptable and informal form of organization that is defined by a lack of formal structure. It operates in an opposite fashion to a bureaucracy. The term was coined by Warren Bennis in his 1968 book The Temporary Society, later popularized in 1970 by Alvin Toffler in Future Shock, and has since become often used in the theory of management of organizations (particularly online organizations). The concept has been further developed by academics such as Henry Mintzberg.
Adhocracy is characterized by an adaptive, creative and flexible integrative behavior based on non-permanence and spontaneity. It is believed that these characteristics allow adhocracy to respond faster than traditional bureaucratic organizations while being more open to new ideas.
Robert H. Waterman, Jr. defined adhocracy as "any form of organization that cuts across normal bureaucratic lines to capture opportunities, solve problems, and get results". For Henry Mintzberg, an adhocracy is a complex and dynamic organizational form. It is different from bureaucracy; like Toffler, Mintzberg considers bureaucracy a thing of the past, and adhocracy one of the future. When done well, adhocracy can be very good at problem solving and innovations and thrives in a diverse environment. It requires sophisticated and often automated technical systems to develop and thrive.
All members of an organization have the authority within their areas of specialization, and in coordination with other members, to make decisions and to take actions affecting the future of the organization. There is an absence of hierarchy.
According to Robert H. Waterman, Jr., "Teams should be big enough to represent all parts of the bureaucracy that will be affected by their work, yet small enough to get the job done efficiently."
Alvin Toffler claimed in his book Future Shock that adhocracies will get more common and are likely to replace bureaucracy. He also wrote that they will most often come in form of a temporary structure, formed to resolve a given problem and dissolved afterwards. An example are cross-department task forces.