Coordination and Delay in Hierarchies

40 Pages Posted: 22 Sep 2009

See all articles by Andrea Patacconi

Andrea Patacconi

University of East Anglia (UEA) - Norwich Business School

Date Written: September 21, 2009

Abstract

This paper studies hierarchical organizations where concerns for fast execution are important and employees must be coordinated to avoid wasteful duplications of effort. Simple conditions are provided for the time spent on coordinating subordinates to be increasing and the span of control to be decreasing as one goes up the hierarchy, with equalities holding if delay is all that matters. When returns to specialization are substantial, the span of control also tends to widen and the hierarchy to flatten as urgency increases. The model suggests that concerns for fast execution may be key in explaining recent trends toward decentralization and delayering in firms.

Suggested Citation

Patacconi, Andrea, Coordination and Delay in Hierarchies (September 21, 2009). RAND Journal of Economics, Vol. 40, No. 1, 2009, Available at SSRN: https://ssrn.com/abstract=1476544

Andrea Patacconi (Contact Author)

University of East Anglia (UEA) - Norwich Business School ( email )

Norwich
NR4 7TJ
United Kingdom