Institutionalization of Autonomy in Management

Two Leading-edge Cases of Western Enterprises

Abstract

The purpose of this study is to develop an effectual concept for research on autonomy in business management. Despite the growing number of management approaches oriented to developing front-line’s autonomy, earlier studies have failed to examine those approaches as organizationally holistic development towards comprehensive management system. In order to overcome this problem, this study sets up ‘institutionalization of autonomy in management’ as a sensitizing concept for qualitative investigation, and conducts comparative study on the leading-edge cases of western enterprises; AES Corporation, the global electric power company based in U.S., and ABB Group, the global engineering company based in Switzerland. These cases are the most representative global enterprises in autonomy-oriented management. This study examines these cases in the points of organizational structure, management system, management processes, organizational culture, and other practices. As a result, this study develops the sensitizing concept, that is, ‘institutionalization of autonomy in management.’ The emerging organization is the construction of complex interrelated institutions. Multiple autonomy-oriented management practices are combined as complementary factors for accomplishing organizational goal consistently and effectively, rather than mere compilation of various practices or partial implementation of new practices into traditional hierarchical organization.