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From Hierarchy to Enterprise: Internal Markets Are the New Foundation of Management

William E. Halal
The Academy of Management Executive (1993-2005)
Vol. 8, No. 4, Restructuring, Re-Engineering, and Rightsizing (Nov., 1994), pp. 69-83
Published by: Academy of Management
Stable URL: http://www.jstor.org/stable/4165224
Page Count: 15
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Since scans are not currently available to screen readers, please contact JSTOR User Support for access. We'll provide a PDF copy for your screen reader.
From Hierarchy to Enterprise: Internal Markets Are the New Foundation of Management
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Abstract

Much like the nation states of Eastern Europe, many of the world's business corporations are going through their own form of perestroika. Highly centralized hierarchies are decomposing into de-centralized, market-driven systems. This transition from hierarchy to enterprise requires a drastic change in executive roles. Executives should leave most decisions to the market, create an organizational infrastructure to guide behavior, and foster collaboration within the corporate community. This change for the corporate executive may be just as dramatic, and productive, as the change required for officials in the economies replacing communism.

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