Less-hierarchical organizations

Perttu Salovaara and Frank Martela

Chapter 26 in Elgar Encyclopedia of Innovation Management, 2025, pp 96-100 from Edward Elgar Publishing

Abstract: Regarding innovativeness, the literature recognizes several advantages associated with less-hierarchical, decentralized structures. At the heart of this is the ability of a self-organizing structure to respond to change and to start creating ideas and initiatives on the go. This responsiveness relies on employees’ intrinsic motivation, autonomous teams, and a more flexible and porous organizational design. To support this, less-hierarchical organizations decentralize most managerial positions by redistributing managerial functions across different roles, teams, mandates and practices. To function as a system, the less-hierarchical organization requires more democratic structures and collaborative practices.

Keywords: Decentralization; Less-hierarchical; Intrinsic motivation; Autonomous teams; Collaborative practices (search for similar items in EconPapers)
Date: 2025
ISBN: 9781035306442
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