The different strategy hierarchies
The different strategy hierarchies
The Different Strategy Hierarchies
Hierarchy is a habitual organizational presentation that is a
fundamental infrastructure deployed by many organizations in order to
realize their management strategies and goals. In such organizations
where hierarchy is the preferred management strategy, key decisions and
polices designing is dominated by the top management organs by involving
in the execution and formulation of the organization’s hierarchical
strategies. A part from the top management elites, only strategic agents
are involved in power circuit in a three alternative power models. The
three hierarchical models preferred by these organizations include the
porous hierarchical model, distributed model, and the strategy as simple
rules model (Cunha, Rego, and Clegg, 2011; pp. 491-2). One of the
organizations known to practice hierarchy management strategy is the
Al-Qaida rebel groups.
Article Annotation
Organizations deploy different strategies as a way of enhancing their
competitiveness in the industry. It is not a surprise that many
organizations are still committed to hierarchy management strategy where
key strategic decisions are conceived at the head-quarter by the top
management organs while the execution of the tasks are delegated to
lower levels. According to Williamson (1975; pp. 67), social
organization is not achievable in without hierarchy in the social
set-up. He argued that hierarchy is fundamental in reducing the
transaction costs. Since firms operate on a cost-minimization principle,
hierarchy is key to cost efficiency. Grint (2010; pp. 43) asserts that
for symbolic reasons, hierarchy is critical since it is founded on the
connotation orders of the Holy Sovereignty. Child (2009; pp. 502)
reasoned that organizational hierarchy is an integrating principle that
enhances collective goal orientation and strategy for distributing
privileges through creation of social differentiations in power, status,
and reward.
Hierarchy Models and their Evaluation
The Porous-hierarchy Mode
This hierarchy mode deviates from the traditional hierarchy that rooted
for coercive and authoritative leadership and management styles
characterized by top decision making. Although it retains a few features
of Tayloristic flavor, it is more enabling and also revises a number of
clauses in Taylorism such as obedient execution by the employees.
Porous-hierarchy, therefore, deviates from the traditional and dominant
version that is founded on hierarchical power and bureaucracies.
Instead, the Porous-hierarchy mode allows all employees in different
management levels within the organization to take part in strategic
decision making process through improvement and learning. The model is
opposed to the formulation of the strategies at the top with execution
left for the bottom members. Rather, the porous-hierarchy mode calls for
the creation of a local learning environment that supports both
execution and formulation of the organizations strategies. The employees
are, therefore, allowed to participate and contribute in the entire
management process (Michelli, 2008; pp. 98). This management mode has
been applied by Toyota.
The Distributed Mode
Like porous-hierarchy mode, distributed model is also a less orthodox
management strategy that entails decoupling of execution and
formulation. Under this model, a visionary leader is charged with the
responsibility of setting the visions and objectives of the
organization. With respect to implementation, no specific responsibility
is designated to specific groups or departments within the organization.
However, the agents are accorded considerable degree of freedom in the
execution process but under tight control. The model least emphasizes on
extrinsic hierarchical control and accountability. The Al-Qaeda
terrorist group is an example of organizations that applies the
distributed mode in their leadership style (Marion and Uhl-Bien, 2003;
pp. 143-4).
References
Child, J, 2009, Challenging hierarchy. In M. Alvesson, T. T. Bridgman,
& H. Willmott (Eds.), The Oxford handbook of critical management
studies (pp. 501–514). Oxford: Oxford University Press.
Cunha, M. P., Rego, A. and Clegg, S, 2011, Beyond Addiction: Hierarchy
and Other Ways of Getting Strategy Done. European Management Journal,
29: 491-503.
Grint, K, 2010, The sacred in leadership: Separation, sacrifice and
silence. Organization Studies, 31, 89–107.
Marion, R., and Uhl-Bien, M, 2003, Complexity theory and Al-Qaeda:
Examining complex leadership. Emergence, 5, 54–76.
Michelli, J. A, 2008, The new gold standard. New York:
McGraw-Hill.
Williamson, O, 1975, Markets and hierarchies. New York: Free Press.