This paper endogenizes coordination problems in organizations by allowing for both ex ante coordination of activities …, using rules and task guidelines, and ex post coordination, using communication and broad job assignments. It shows that: (i … coordination. In particular, specialization is often non-monotonic in the importance of coordination. (ii) Organizations exhibit …

-unit managers’ authority. Realizing synergies then involves a tradeoff between motivation and coordination. Motivating managers …

, which must be adapted to a privately observed shock and coordinated with other tasks. Coordination requires that agents pay … leadership naturally arise as a response to organizational trade-offs between coordination and adaptation. At the optimum, all …