![]() ![]() Power resides in the hands of a few people who hold expertise in various fields and can thus manage the system more efficiently.The minority holding the power then tends to dominate, hence transforming the system into an oligarchy. This then would lead to the second step, which is the concentration of power in the hands of the people holding higher positions in the hierarchy. The complexity of this hierarchy will continuously increase with the growth of the organization, for proper administrative efficiency. One, any organization or form of government will tend to have a hierarchy for the proper division of labor. ![]() Robert Michels, the man behind the term, explains this process in his book “Political Parties” in the following steps. ![]() The Iron Law of Oligarchy states that every form of government or organization will eventually transform into an oligarchy. A corporate setup, with the major powers in the hands of the CEO, the Director, and the top executives, provides for an adequate example of an oligarchy. Unlike the common oligarchical governments, the people in power do not necessarily need to be rich. The powers are shared and an oligarchy is therefore different from an autocracy. The word oligarchy is derived from the Greek word oligarkhes, meaning “a few governing”. Netocracy: Oligarchy- An IntroductionĪn oligarchy is a form of government in which the power to rule resides in the hands of a few people. ![]()
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