Nicolai J. Foss

ThinkersBorn 1964Organizational economist

Works

In Organizational Structures

Known for

The organizational economics of delegation and hierarchy

Ideas

Selective intervention and internal hybrids. Radical internal hybrids such as Oticon's spaghetti organization are hard to design and sustain because managers cannot credibly commit not to intervene in delegated decisions; at Oticon, frequent managerial meddling led to a severe loss of motivation and arguably caused the change, about a decade later, to a more traditional matrix organization. Caveat: One firm; refutable implications are developed, not tested. Read in its abstract only.

Why managers matter. With Klein, Foss argues that authority and hierarchy are needed to coordinate work, creative work included, and that bossless fads often backfire. Caveat: A book-length argument; Martela (2019) takes the opposite view, that self-managing organizations are a novel form, especially viable where interdependence between units is low, outputs are highly tailored, and employee expertise and motivation are high.

Communication modes in self-organized communities. With Frederiksen and Rullani, found that unstructured communication goes with launching new open source projects and artifact-structured communication with joining existing ones. Caveat: Associations in one community's data.

In this section, “read” means read by the Organizational Structures series: where a line says a work, or part of one, was not read, the series did not read it.

Organizational Structures that draw on Nicolai J. Foss (3)

Back to the thinkers