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The Theory of Lateral and Scalar Organization

In: Organization Theory by Chester Barnard

Author

Listed:
  • Kazuhito Isomura

    (Chuo University)

Abstract

Barnard added a new concept of organization, lateral organization, when he published his second book, Organization and Management. When Barnard (1938) argued the theory of complex formal organization, he pointed out that there are two different complex organizations: horizontal and vertical. A complex formal organization is created by combining two or more unit organizations. A unit organization is divided when it grows beyond its size limit. Divided unit organizations are combined horizontally or vertically. However, Barnard (1938) focused on vertically combined formal organizations; he just referred to the existence of horizontal complex organizations. Barnard (1948) fully examines lateral organizations in comparison with scalar organizations. First, this chapter explains the nature of lateral and scalar organizations; second, it examines the differences between lateral and scalar organizations and identifies advantages and disadvantages of both organizations; third, it discusses two balance problems for scalar organizations; finally, it presents some implications of the theory of lateral and scalar organization.

Suggested Citation

  • Kazuhito Isomura, 2020. "The Theory of Lateral and Scalar Organization," SpringerBriefs in Business, in: Organization Theory by Chester Barnard, chapter 0, pages 61-72, Springer.
    • Handle: RePEc:spr:spbrcp:978-981-15-9206-5_6
    DOI: 10.1007/978-981-15-9206-5_6
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