Flat organizations - Martela et al

8 important questions on Flat organizations - Martela et al

In the article of Martela et al Weber's bureaucracy, Mintzberg's adhocracy and SMO's are compared, among other things based on basic structural arrangements, managerial power over subordinates and decision making power. What is the difference between these three organizations?

- Basic structural arrangement
Bureaucracy: Hierarchical
Adhocracy: Matrix
SMO: Flat

- Managerial power

Bureaucracy: Extensive
Adhocracy: Loosened, especially within teams
SMO: Radical decentralization

- Decision making

Bureaucracy: Hierarchical
Adhocracy: Selective decentralization
SMO: Radical decentralization

We can also compare the three types of organization with each other based on Provision of reward, including rewarding desired behavior and eliminating free riding. Elaborate about the difference between bureaucracy, adhocracy and SMO.


- Reward desired behavior

Bureaucracy: monetary systems, bonus systems, advancement options etc.
Adhocracy: team-based bonus
SMO: monetary compensation with salary levels and bonuses through peer-based process.

- Eliminate free riding
Bureaucracy: supervisors responsible for monitoring actions and output.
Adhocracy: supervisor responsible for monitoring. Team members are accountable for each other
SMO: employees accountable for and monitored by each other.

What is the difference between bureaucracy, adhocracy and SMO regarding provision of information, including direction setting and coordination of interdependent tasks?

- Direction setting

Bureaucracy: strict task boundaries and precise instructions.
Adhocracy: teams have necessary information needed for doing the work. The rest is for the manager.
SMO: Transparency about all key information

- Coordination of interdependent tasks

Bureaucracy: Standardized procedures and top-down task allocation and monitoring.
Adhocracy: Within team through constant communication, within-function is hierarchically.
SMO: Within team through constant communication, and within function through coordination roles and IT systems.
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What are the three boundary conditions which describe the context in which SMO are most likely to have competitive advantage? (These can also be considered to be the contingency factors)

- Independence of units
- Output customization
- Proactive workforce (ethics, motivation, expertise)

What are the three drawbacks of SMO's?

1. Chaos / confusion / stress
2. Homophily --> attract people that are alike
3. Difficult to determine long-term strategy.

Why do self-managing organizations become more relevant? (3 reasons)

1. Increasing business dynamics (fast changing environment)
2. Increasing usage of IT -systems
3. Increasing professional workforce

To achieve the goals, organizations must overcome four universal problems. What are the four universal problems as discussed by Martela?

1. Task division
2. Task allocation
3. Provision of rewards (including promoting desired behavior and eliminating free riding)
4. Provision of information (including direction setting and coordinating interdependent tasks)

How does Martela et al define self-managing organizations?

Self-managing organizations are organizations with radical systematic decentralization of authority through the entire organization to the degree of almost abolishing middle management and supervisory relationships.

The question on the page originate from the summary of the following study material:

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