Designing lateral organizations: an analysis of the benefits, costs, and enablers of nonhierarchical organizational forms

Designing lateral organizations: an analysis of the benefits, costs, and enablers of nonhierarchical organizational forms

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Article ID: iaor20083641
Country: United States
Volume: 28
Issue: 1
Start Page Number: 1
End Page Number: 25
Publication Date: Jan 1997
Journal: Decision Sciences
Authors: , ,
Abstract:

Twenty-first century organizations will require designs that enable them to cope with turbulent environments. Organizations have experimented with lateral organizational designs for this purpose, but research evidence concerning these forms is sparse. We analyzed data obtained from 512 employees within eight diverse organizations implementing flexible lateral organizations. Using a sequence comparison methodology, we were able to identify and categorize the major costs, benefits, and enablers associated with implementing these forms of complex organizations. Propositions for effectively managing lateral relations were tested and managerial implications were explored.

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