Skip to main content
SpringerLink
Log in

Decentralization

  • Living reference work entry
  • First Online:
The Palgrave Encyclopedia of Strategic Management

  • 171 Accesses

Abstract

Application of Ackoff’s typology of systems to the concept of decentralization shows that at least two types of decentralization can be distinguished. Decentralization 1.0 is the well-known traditional type developed in the context of the classical command-and-control paradigm, and has a top-down character. By contrast, Decentralization 2.0 evolves from a different set of basic assumptions and values, the enabling-and-autonomy paradigm, which is more bottom-up oriented. The Law of Requisite Variety irrefutably stipulates that in order to cope with increasing environmental chaos and complexity, corporations must evolve towards higher-variety organizational forms characterized by this different type of decentralization. History has shown that early adopters of a new decentralization concept have often reaped enormous benefits.

This entry was originally published on Palgrave Connect under ISBN 978-1-137-49190-9. The content has not been changed.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution

Institutional subscriptions

Similar content being viewed by others

References

  • Ackoff, R.L. 1994. The democratic corporation. New York: Oxford University Press.

    Google Scholar 

  • Ackoff, R.L. 1999. Re-creating the corporation: A design of organizations for the 21st century. New York: Oxford University Press.

    Google Scholar 

  • Ackoff, R.L., and F.E. Emery. 1972. On purposeful systems. Chicago: Aldine-Atherton.

    Google Scholar 

  • Ashby, R.W. 1956. An introduction to cybernetics. London: Chapman & Hall.

    Book  Google Scholar 

  • Boehm, C. 2001. Hierarchy in the forest: The evolution of egalitarian behavior. Cambridge, MA: Harvard University Press.

    Google Scholar 

  • Broekstra, G. 2002. A synergetics approach to disruptive innovation. Kybernetes: The International Journal of Systems & Cybernetics 31: 1249–1259.

    Article  Google Scholar 

  • Broekstra, G. 2014. Building high-performance, high-trust organizations: Decentralization 2.0. London: Palgrave Macmillan.

    Book  Google Scholar 

  • Chandler Jr., A.D. 1962. Strategy and structure: Chapters in the history of the industrial enterprise. Cambridge, MA: The MIT Press.

    Google Scholar 

  • Chandler Jr., A.D. 1977. The visible hand: The managerial revolution in American business. Cambridge, MA: The Belknap Press of Harvard University Press.

    Google Scholar 

  • Collins, J. 2001. Good to great: Why some companies make the leap … others don’t. New York: HarperCollins.

    Google Scholar 

  • Drucker, P.F. 1980. Managing in turbulent times. London: William Heinemann.

    Google Scholar 

  • Drucker, P. F. [1946] 1972. Concept of the corporation. New York: New American Library.

    Google Scholar 

  • Eldredge, N. 1999. The pattern of evolution. New York: Freeman and Company.

    Google Scholar 

  • Ghoshal, S., and C.A. Bartlett. 1997. The individualized corporation: A fundamentally new approach to management. New York: HarperCollins.

    Google Scholar 

  • Mintzberg, H. 1983. Structure in fives: Designing effective organizations. Englewood Cliffs: Prentice Hall.

    Google Scholar 

  • Mintzberg, H. 1987. Crafting strategy. Harvard Business Review 65: 66–75.

    Google Scholar 

  • Mintzberg, H. 2009. Rebuilding companies as communities. Harvard Business Review, July–August, 1–5.

    Google Scholar 

  • Moore, J.F. 1996. The death of competition: Leadership and strategy in the age of business ecosystems. Chichester: Wiley.

    Google Scholar 

  • Pennsylvania Railroad. 1858. Organization for conducting the business of the road, adopted December 26, 1857. Philadelphia: Crissy & Markley Printers.

    Google Scholar 

  • Sloan Jr., A.P. 1963. My years with general motors. New York: Doubleday & Company.

    Google Scholar 

  • Wallander, J. 2003. Decentralization – Why and how to make it work: The Handelsbanken way. Stockholm: SNS Förlag.

    Google Scholar 

  • Weber, M. 1947. The theory of social and economic organization. London: Oxford University Press.

    Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Beetsterzwaag, The Netherlands

    Gerrit Broekstra

Authors
  1. Gerrit Broekstra
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Gerrit Broekstra .

Editor information

Editors and Affiliations

  1. Stanford University , Stanford, California, USA

    Mie Augier

  2. Tusher Ctr Intellectual Capital, University of California Tusher Ctr Intellectual Capital, Berkeley, California, USA

    David J. Teece

Copyright information

© 2016 The Author(s)

About this entry

Cite this entry

Broekstra, G. (2016). Decentralization. In: Augier, M., Teece, D. (eds) The Palgrave Encyclopedia of Strategic Management. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-349-94848-2_726-1

Download citation

  • DOI: https://doi.org/10.1057/978-1-349-94848-2_726-1

  • Received:

  • Accepted:

  • Published:

  • Publisher Name: Palgrave Macmillan, London

  • Online ISBN: 978-1-349-94848-2

  • eBook Packages: Springer Reference Business and ManagementReference Module Humanities and Social SciencesReference Module Business, Economics and Social Sciences

Publish with us

Policies and ethics

Search

Navigation