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Coordinating Tasks in M-Form and U-Form Organisations

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  • Yingyi Qian
  • Gerard Roland
  • Chenggang Xu

Abstract

We model the coordination of specialised tasks inside an organisation as "attribute matching". Using this method, we compare the performance of organisational forms (M-form and U-form) in implementing changes such as innovation and reform. In our framework, organisational forms affect the information structure of an organisation and thus the way to coordinate changes. Compared to the U-form, the M-form organisation achieves better coordination but suffers from fewer economies of scale. The distinctive advantage of the M-form is flexibility of experimentation, which allows the organisation to introduce more innovation and reform. The theory is illustrated by the organisational differences between China and the former Soviet Union and sheds light on their different reform strategies, particularly with regard to the prevalence of the experimental approach in China.

Suggested Citation

  • Yingyi Qian & Gerard Roland & Chenggang Xu, 2003. "Coordinating Tasks in M-Form and U-Form Organisations," STICERD - Theoretical Economics Paper Series 458, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
  • Handle: RePEc:cep:stitep:458
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    References listed on IDEAS

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    More about this item

    Keywords

    Coordination; task; organisation; reform; innovation; China; Russia.;
    All these keywords.

    JEL classification:

    • D20 - Microeconomics - - Production and Organizations - - - General
    • D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • H70 - Public Economics - - State and Local Government; Intergovernmental Relations - - - General
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • P11 - Economic Systems - - Capitalist Systems - - - Planning, Coordination, and Reform

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