Question $1(15$ Marks$)$

Imagine a software development company that operates in a rapidly changing industry. The company's projects often require quick adaptation to new technologies and market demands. In the past, the company followed a traditional hierarchical structure, which often led to delays in decision$-$making and difficulty in responding promptly to market shifts. To address these challenges, the company's leadership decides to transition to a chaordic organisational approach. They restructure the company to encourage self$-$organisation among teams, empower employees to make decisions autonomously, and foster open communication channels across all levels of the organisation. In a chaordic organisation, there is a balance between chaos and order, allowing for both flexibility and structure.

Based on the scenario above, evaluate any two $(2)$ potential benefits and three $(3)$ potential challenges of adopting a chaordic approach in organisational management.