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- Cäker, Mikael, 1972, et al.
(author)
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Strategic alignment in decentralized organizations — The case of Svenska Handelsbanken
- 2014
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In: Scandinavian Journal of Management. - : Elsevier BV. - 0956-5221 .- 1873-3387. ; 30:2, s. 149-162
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Journal article (peer-reviewed)abstract
- Recent research emphasizes technocratic controls to support the self-management aspect of empowerment. Strategic alignment is ascribed to socio-ideological controls. However, the indirect nature of socio-ideological controls pose a question regarding monitoring of strategic alignment in organizations with empowerment-oriented controls. We adopt a holistic approach in exploring the role of and interaction between organization structure, socio-ideological control and technocratic control through a qualitative case study. Our study confirms the essential role of socio-ideological controls in ensuring strategic alignment, but highlights the role of trust in experienced-based advice-giving from superiors to subordinates. Technocratic controls contain information that provide visibility of local actions and are used in hierarchical communication. The interrelationship between socio-ideological and technocratic controls is dependent on the organization structure design through time and proximity. A high capacity to communicate is thereby established, enabling monitoring without impairing empowerment.
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