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Coordinating tasks in M-form and U-form organisations

Qian, Yingyi, Roland, Gerard and Xu, Cheng-Gang (2003) Coordinating tasks in M-form and U-form organisations. TE/03/458. Suntory and Toyota International Centres for Economics and Related Disciplines, London School of Economics and Political Science, London, UK.

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Abstract

We model the coordination of specialised tasks inside an organisation as "attribute matching". Using this method, we compare the performance of organisational forms (M-form and U-form) in implementing changes such as innovation and reform. In our framework, organisational forms affect the information structure of an organisation and thus the way to coordinate changes. Compared to the U-form, the M-form organisation achieves better coordination but suffers from fewer economies of scale. The distinctive advantage of the M-form is flexibility of experimentation, which allows the organisation to introduce more innovation and reform. The theory is illustrated by the organisational differences between China and the former Soviet Union and sheds light on their different reform strategies, particularly with regard to the prevalence of the experimental approach in China.

Item Type: Monograph (Discussion Paper)
Official URL: http://sticerd.lse.ac.uk/
Additional Information: © 2003 by the authors
Library of Congress subject classification: H Social Sciences > HB Economic Theory
H Social Sciences > HD Industries. Land use. Labor
Journal of Economic Literature Classification System: D - Microeconomics > D2 - Production and Organizations > D20 - General
D - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D80 - General
L - Industrial Organization > L2 - Firm Objectives, Organization, and Behavior > L22 - Firm Organization and Market Structure: Markets vs. Hierarchies; Vertical Integration; Conglomerates; Subsidiaries
H - Public Economics > H7 - State and Local Government; Intergovernmental Relations > H70 - General
P - Economic Systems > P1 - Capitalist Systems > P11 - Planning, Coordination, and Reform
H - Public Economics > H1 - Structure and Scope of Government > H11 - Structure, Scope, and Performance of Government
Sets: Collections > Economists Online
Departments > Economics
Rights: http://www.lse.ac.uk/library/usingTheLibrary/academicSupport/OA/depositYourResearch.aspx
Identification Number: TE/03/458
Date Deposited: 06 Mar 2008 12:31
URL: http://eprints.lse.ac.uk/3746/

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