An Exploratory Study on Coordination Mechanisms in Self-managing Organizations: A Comparative Analysis of Organizational Types

This study explores the coordination mechanisms that can replace traditional hierarchical structures in boss-less self-managing organizations. To achieve this, a case study was conducted comparing Morning Star and Valve, two organizations renowned for successfully implementing self-management systems in different industrial and structural contexts. The findings reveal that self-managing organizations' coordination mechanisms vary in their application of formal and informal processes, depending on the organizational structure type. Both task coordination and conflict resolution are mainly driven by peer-to-peer mutual adjustments. Regarding task coordination mechanisms, organizations founded on personal contract networks (e.g., traditional manufacturing industries) emphasize individual coordination, where elements like personal ‘missions’ or/and ‘responsibilities’ are central. Conversely, in parallel team-based structures (e.g., knowledge-intensive service industries), intra-team coordination is critical, highlighting ‘collaboration’ or/and ‘creativity’ as key coordination mechanism components. As a result, formal processes tend to be more effective in organizations with personal contract-based structures, whereas informal processes are better suited to parallel team-based structures. Regarding conflict resolution mechanisms, differentiated approaches are required based on organizational structure type. Organizations with personal contract-based networks benefit from a high degree of standardization and procedural consistency, increasing the effectiveness of formal processes. In contrast, parallel team-based structures prioritize (customer-oriented) team flexibility, rendering informal processes more effective for conflict resolution. These findings present meaningful insights for both academia and practitioners, suggesting that self-managing organizations can be viable alternatives to traditional hierarchical organizations.