Categories

…hierarchy is an unbeatable machine when it comes to coordinating a flow of activities at the lowest cost. Hierarchy is an instrument of efficiency rather than the opposite.

…hierarchy is by no means a panacea for every problem that an organization faces. Still, it is there for a reason: it helps get activities coordinated and people cooperating.

…hierarchy isn’t as valuable where few interdependencies exist among people, resources, and tasks, uncertainty is low, and there is plenty of time to make decisions.

A key function of hierarchy is having procedures that describe how interdependencies are to be handled.

…[hierarchy] has always been present, in one form or another, for as long as there have been humans.

Evolutionary anthropology provides evidence that hierarchy is highly useful and has basic survival value.

The idea that hierarchy requires top-down, authoritative decision-making by a single boss is largely a fiction.

…by supporting, enabling, and nurturing new products and services, new production methods, and entry into new markets, hierarchy can be good for innovation.

Setting up special subunits with unique responsibilities is a feature, not a bug, of hierarchy.

…hierarchical firms are sometimes more innovative than smaller, flatter firms, but not always. Context matters.