Defined by Prof. Jeffrey S. Nielsen.
See our related entry on Peer-Based Management.
1. Information is tightly controlled, where just bits and pieces are actually given to the subordinates of the rank-based leaders and only on a need-to-know-basis.
2. Decision-making is made by the rank-based leaders and imposed on the company from the top-down.
3. The expertise of outsiders is privileged over the tacit knowledge and practical wisdom of the company’s own employees.