Rank-Based Management

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Defined by Prof. Jeffrey S. Nielsen.

See our related entry on Peer-Based Management.


Rank-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.