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This structure requires all new information passing from the nodes to be processed by the hubs before passing to the nodes.
The hub-node framework in the multiunit context both adds risk and precludes opportunities for improvement. The principle suggesting that "higher-level managers filter data from headquarters to frontline managers" runs the risk of that information will be lost in the process. The principles envision nodes as useful merely for detection and notification of problems, ignoring the executive potential of nodes. The hub-node structure precludes nodes from passing new information to other nodes. A return to fundamental, long-term, and value-creating principles such as these are promising regardless of the organizational framework.
Also, Garvin and Levesque's proposed solutions to the problem may ultimately prove too cumbersome for the average organization to execute well. Their suggestions actually promise to make more work for the higher-level managers. This is ironic because the key justifications for organizational expansion are economies of scale and operational efficiency.
Conclusion
It is beneficial that more attention is being paid to multiunit organizations. Scholars like Garvin and Levesque add much value to the field with their identification of the core problems. However, if organizations want to overcome these problems, they will have to make a deeper examination of the basic organization framework and be prepared to depart from the hub-node framework if necessary.
Bibliography
David a. Garvin and Lynne C. Levesque, the Multiunit Enterprise. Harvard Business Review June 2008
Bibliography
David a. Garvin and Lynne C. Levesque, the Multiunit Enterprise. Harvard Business Review June 2008
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