Situation

1. Variety and overlap assume organizations that are similar to the networks.
2. There are multiple actors involved in decision-making.
3. As nodes in a network, these actors like nodes are related to each other .
4. Every proposed decision will result in a push and pull among several of these nodes with unpredictable outcomes.

How to decide in such a networked organization?

Top-Down approach

• Definition: the leader using her formal authority directly (command and control)
• Pros: clear, peace
• Cons: makes organization reactive, little potential for cooperative behavior

Bottom-up approach:

• Definition: telling organizational members what to do, the leader is trusting the lower levels to generate their own problems and solutions
• Pros: respects people's knowledge, potential for cooperative behavior
• Cons: leader may become captive