Information Hyperarchies

Informational Hyperarchies in Business

In the modern technological world information does not flow in a linear fashion and neither should management.  While there is a place for some hierarchy, you have to have a leader, the formalized strict reporting structures is often a hindrance to innovation and success. 

Integration on a global scale is crucial for international business and innovation.  Organizing information flows on a hierarchical basis works against integration of all information (Daniels, et al, 2009).  The modern sharing of information via social net works like Facebook, LinkedIn, Twitter, etc. show that volumes of information can be distributed over a wide area and filtered by those who find the need to know.  I personally would much rather have too much information sent to me and have to filter some out than find myself missing critical data that could have helped me.

One of the downsides to a hierarchy is that information is secular.  Divisions may not share with others and work at counterproductive goals (Daniels, eat al, 2009).  In addition, employee goal management may pit multiple groups against one another with conflicting goals for growth, profit, sales or efficiency.  In some cases, these segregated hierarchies can lead to legal issues like in the case of Enron (Petra, 2006).  A hyperarchy is more transparent and allows for more information to be shared, and enables for more transparency (Daniels, et al, 2009).

Virtual organizations are also becoming more dominant as globalization occurs, and workers will demand more and more virtual communication methods (Daniels, et al, 2009).  Allowing for reporting of virtual teams and groups is becoming more important.  Many companies have been successful using this type of approach like Straberry Frog marketing and any open source development system like Linux or Mozilla (Daniels, et al, 2009). 

Corporate governance should allow for horizontal and vertical information flow. Corporate failures and scandals such as Enron and MCI WorldCom have highlighted the need to establish good governance systems as an important issue for all countries (Davies & Schlitzer, 2008).  Developing a structure that is more transparent is one way to help prevent these issues. After the extreme corporate failures of Enron and MCI WorldCom in 2001, corporate governance became an important issue throughout the world. Many shareholders had lost confidence in businesses and corporate governance codes of best practice were the main means of restoring investor confidence. However, according to the special requirements of a country, many different corporate governance systems have evolved (Davies & Schlitzer, 2008).

Overall using a hyperarchy increases transparency and symmetry of information (Daniels, et al, 2009).  Through transparency, information can flow better and reduce potential duplication of work, as well as unethical behavior (Davies & Schlitzer, 2008).  As we move forward into the 21^st century, more and more global business’s will rely upon hyperarchies for information flow.

REFERENCES

Daniels, J. D., Radebaugh, L. H., & Sullivan, D. P. (2009). International Business (12 ed.). (S. Yagan, Ed.) Upper Saddle River, NJ: Pearson Education, Inc.

Davies, M.N., & Schlitzer, B.W. (2008). The Impracticality of an international “one size fits all” corporate governance code of best practice. Managerial Auditing Journal, 23(6), 532-544.

Kidger, P. . (2002). Management structure in multinational enterprises. Employee Relations, 24(1), 69-85.

Petra, S. . (2006). Corporate governance reforms: fact or fiction?. Corporate Governance, 6(2), 107-115.