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Flat firms, complementary choices, employee effort, and the pyramid principle

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  • Olav Sorenson

    (UCLA Anderson School of Management)

Abstract

I review Markus Reitzig’s book, Get Better at Flatter, and offer some critical observations on why managers might want to flatten their firms and on Reitzig’s advice to them. I also introduce the pyramid principle, a simple theory of why firms might end up taller than they would want to be.

Suggested Citation

  • Olav Sorenson, 2022. "Flat firms, complementary choices, employee effort, and the pyramid principle," Journal of Organization Design, Springer;Organizational Design Community, vol. 11(1), pages 11-14, March.
    • Handle: RePEc:spr:jorgde:v:11:y:2022:i:1:d:10.1007_s41469-022-00115-9
    DOI: 10.1007/s41469-022-00115-9
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    References listed on IDEAS

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    1. Oliver E. Williamson, 1967. "Hierarchical Control and Optimum Firm Size," Journal of Political Economy, University of Chicago Press, vol. 75(2), pages 123-123.
    2. Markus Reitzig, 2022. "How to get better at flatter designs: considerations for shaping and leading organizations with less hierarchy," Journal of Organization Design, Springer;Organizational Design Community, vol. 11(1), pages 5-10, March.
    3. Michael Keren & David Levhari, 1979. "The Optimum Span of Control in a Pure Hierarchy," Management Science, INFORMS, vol. 25(11), pages 1162-1172, November.
    4. Jan W. Rivkin, 2000. "Imitation of Complex Strategies," Management Science, INFORMS, vol. 46(6), pages 824-844, June.
    5. Milgrom, Paul & Roberts, John, 1990. "The Economics of Modern Manufacturing: Technology, Strategy, and Organization," American Economic Review, American Economic Association, vol. 80(3), pages 511-528, June.
    6. Saerom (Ronnie) Lee, 2022. "The myth of the flat start‐up: Reconsidering the organizational structure of start‐ups," Strategic Management Journal, Wiley Blackwell, vol. 43(1), pages 58-92, January.
    Full references (including those not matched with items on IDEAS)

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