Holarchy
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David Spangler: "In a hierarchy, participants can be compared and evaluated on the basis of position, rank, relative power, seniority, and the like. But in a holarchy each person’s value comes from his or her individuality and uniqueness and the capacity to engage and interact with others to make the fruits of that uniqueness available."[2] Wikipedia
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Koestler was influenced by two observations in proposing the notion of the holon. The first observation was influenced by Herbert A. Simon's parable of the two watchmakers—in which Simon concludes that complex systems evolve from simple systems much more rapidly when there are stable intermediate forms present in the evolutionary process than if they are not present.[2]
The second observation was made by Koestler himself in his analysis of hierarchies and stable intermediate forms in non-living matter (atomic and molecular structure), living organisms, and social organizations. He concluded that, although it is easy to identify sub-wholes or parts, wholes and parts in an absolute sense do not exist anywhere. Koestler proposed the word holon to describe the hybrid nature of sub-wholes and parts within in vivo systems. From this perspective, holons exist simultaneously as self-contained wholes in relation to their sub-ordinate parts, and as dependent parts when considered from the inverse direction.
Koestler also says that holons are self-reliant units that possess a degree of independence and can handle contingencies without asking higher authorities for instructions. I.e. they have a degree of autonomy. These holons are also simultaneously subject to control from one or more of these higher authorities. The first property ensures that holons are stable forms that are able to withstand disturbances, while the latter property signifies that they are intermediate forms, providing a context for the proper functionality for the larger whole.
Finally, Koestler defines a holarchy as a hierarchy of self-regulating holons that function first as autonomous wholes in supra-ordination to their parts, secondly as dependent parts in sub-ordination to controls on higher levels, and thirdly in coordination with their local environment.