Business Commons^™

Interaction Of The Legitimate System And The Shadow System In Organisations, Caroline Halpin, Philomena Hanlon

Conference papers

This research examines the relationship between the Legitimate and the Shadow Systems in organisations: an interaction that can result in bringing an organisation into a state of bounded instability, and therefore increased creativity and innovation. The Legitimate System consists of the formal hierarchy, bureaucracy, rules, controls and communication patterns in an organisation. A properly functioning Legitimate System is vital for the conduct of business in an organisation in order to ensure its survival and efficiency. The Shadow System is a term coined by Stacey (1997) to describe the informal network of relations within the organisations that are evident in casual …