Reducing Control Loss in Organizations: The Implications of Dual Hierarchies, Mentoring and Strengthening Vertical Dyadic Linkages

Published Online:https://doi.org/10.1287/mnsc.30.2.156

Using Williamson's (1971) control loss model, the relative merits of dual hierarchies (P. B. Evans [Evans, P. B. 1975. Multiple hierarchies and organizational control. Admin. Sci. Quart.20 250–259.), strong vertical dyadic linkages, and mentoring for reducing overall control loss are explored. The potential impact for each organizational structure or process is assessed.

Simulations are performed to examine the impact of each of these organizational arrangements for organizations with hierarchical levels ranging from 3 to 11 levels. In addition, the effects of deteriorating control at each level are investigated.

In the discussion of appropriate control strategies, a number of other organizational characteristics are discussed. I conclude that:

  • Under conditions of sequential or reciprocal interdependence, building uniformly high control efficiency throughout the organization is essential.

  • In small organizations (and those with high turnover) dual hierarchies and cadre relations are appropriate mechanisms for reducing control loss.

  • In large organizations (and those with low turnover) mentoring and cadres are appropriate.

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