Abstract: This paper investigates random allocation of authority in a multidivisional organization in which decisions must be adapted to local conditions but also coordinated with each other. Our newly-proposed organizational structure introduces commitment to randomization of pure centralization and pure decentralization. Our result shows that random delegation indeed improves the organization's ability to govern adaptation and coordination in a strategic information transmission environment.  Thus the optimal organizational structure may involve random decentralization and the organization may add uncertainty on the power structure on purpose.

Key words: adaptation, coordination, centralization, decentralization, random decentralization