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Organizing and the New Agile and Virtual Firm

In: The New Workforce Challenge

Author

Listed:
  • Andrés Hatum

Abstract

Malone (2004), trying to understand changes in organizational patterns over time, concludes that businesses have been structured according to the way in which societies have been organized. He notes that until 1800 most businesses worldwide were family fi rms that enjoyed a lot of freedom but rarely interacted with members of other groups. Corporate hierarchies emerged in 1870 with the railroad industry, which was one of the fi rst to embrace centralization. The benefi ts of scale were important to the realization of the centralization process. Malone highlights the case of Ford, where the amount of time to make a Model T had dropped from 12 hours and 8 minutes to only 1 hour and 33 minutes in 1913. Many companies that could not achieve such scale benefi ts did not survive. Adaptation was clearly necessary to survival.

Suggested Citation

  • Andrés Hatum, 2013. "Organizing and the New Agile and Virtual Firm," Palgrave Macmillan Books, in: The New Workforce Challenge, chapter 1, pages 11-34, Palgrave Macmillan.
  • Handle: RePEc:pal:palchp:978-1-137-30299-1_2
    DOI: 10.1057/9781137302991_2
    as

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