The M-form in a parent managed relatively detached business units, was the most successful organizational design of the twentieth century. However, contemporary economic conditions call for designs that companies can take advantage of synergies in their business, and to this dimension of the M-form is notoriously weak. This article reports on empirical research, the fundamental tension between clear lines of authority and the use of synergies that company raises … Read more »

The M-form in a parent managed relatively detached business units, was the most successful organizational design of the twentieth century. However, contemporary economic conditions call for designs that companies can take advantage of synergies in their business, and to this dimension of the M-form is notoriously weak. This article reports on empirical research, the fundamental tension between clear lines of authority and the use of synergies that companies face when she says of the M-form and move implementation of shared service centers, corporate account management and matrix organizations . However, a limited but significant number of business organizational forms that signal a new way of resolving this tension developed. These companies are organized around multiple dimensions (eg, region, product, and account) and are able to simultaneously hold different managers responsible for the performance on these dimensions. The multidimensional organization is best understood as a next step in the evolution from a resource-centric physical production model to a customer-oriented knowledge-exploitation model. It is a form of organization that is particularly well suited for the promotion of teamwork that are necessary to create economic value in complex markets on the basis of knowledge and intangible resources is distributed adjusted.
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from
J. Strikwerda,
J. W. Stoelhorst
Source: California Management Review
22 pages.
Release Date: 1 August 2009. Prod #: CMR432-PDF-ENG
The emergence and development of the multidimensional organization HBR case solution

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