Hierarchy and diffusion of organizational forms

Abstract

In this paper we first of all summarize and rationalize current typologies of organizational forms, arranging available classifications in a hierarchy of increasing generality. The ensuing structure parallels the classification of living beings into classes of increasing generality such as species, genus, family, order, and so on. Subsequently, we analyze the structure of communications that favored the diffusion of each organizational form. We isolate a few stylized communication structures, pointing to the presence of several sources endowed with global connections as the most efficient diffusion mode. The empirical research that is being carried out on single organizations is close to observing their T-patterns, whereas nothing comparable is in sight for organizational forms as yet. However, at least in some cases, we dare to formulate tentative hypotheses on certain features that the ensuing T-patterns-of-patterns might exhibit.

Keywords: T-pattern; evolutionary social science; information flows; organizational ecology; organizational forms; organizational routines.

Figure 1

Hierarchical classification of living organisms (left) and human organizations (right). The accepted classification of living organisms entails eight levels nested in one another, e.g., Cleopatra is a cat but also a feline and a mammal. For human organizations, we propose four nested levels of organizational forms based on existing classification criteria. Each level is nested in the superior one; hence, each organization displays behavior patterns of a certain sort, has a typical structure, a certain institutional arrangement, and the organization is characterized by a certain ideology.

Figure 2

The graphical representation of behavioral routines that emerges out of empirical investigations. Nodes represent actions, edges link actions that are carried out in sequence, thickness represents their frequency. It is evident that routines do not merely repeat sequences of actions, but also add some degree of exploration to the received sequence. Our elaboration, loosely inspired by Pentland et al. (2011).

Figure 3

Three basic structures, typical of organizational forms at Level 2. Left (A), a functional structure with two functions A and B. Center (B), a multidivisional structure where functions A and B are duplicated across divisions 1 and 2, respectively. Right (C), a matrix structure whose members report to functional units A and B as well as market/area/project specialists 1 and 2, respectively.