Chapter 5: Less hierarchical organizations: the fall of the traditional pillars (part I: hierarchy)
Open access

As time went by, the limits of the traditional organization became increasingly apparent. New forms of management were necessary. The solution to the problem was anticipated by Handelsbanken's Jan Wallander (1999, p. 413): "it is very important that your organization is based on a number of relatively small units which have a considerable degree of independence and authority. In other words that your organization is decentralized. Without this, it is very difficult for your employees to become involved in their work, which is extremely important". Organizations, in other words, needed to become less hierarchical.