Enabling control in a radically decentralized organization

Purpose: This paper aims to consider the enabling and coercive features of formal control in non-hierarchical settings and the factors influencing perceptions of controls. Design/methodology/approach: This paper is a qualitative case study of a single organization. Data are collected via semi-structured interviews, a range of published materials and a management presentation. Analysis considered the features of coercive and enabling control at the level of individual controls. Findings: In this highly decentralized organization, internal and global transparency predominate and help managers respond to contingencies in flexible ways. Managers cannot repair certain elements of controls to ensure there is stability in an otherwise flexible system. The existence (absence) of enabling features combined with the type of controls (e.g. action or results controls) lacking enabling features influence managers’ perceptions of control. Research limitations/implications: Few studies have considered formal controls in non-hierarchical organizations. The findings reveal the importance of minimally coercive control features in creating a stable structure for controlling performance. The findings may not be relevant to other hierarchical organizations. Originality/value: The study is conducted in a highly decentralized context where managers have extensive autonomy (flexibility). The context allows the role of minimally coercive control features to be explored in an essentially enabling organizational setting.