is, of course, consistent with the This conclusion earlier argument that external control lin this case, from headquartersl pushes an organization toward machine bureaucracy. The point is invariably illus erate takes over an entrepre- trated when a conglom neurial company and imposes a lot of bu reaucratic systems and standards on its simple structure. The divi sionalized form was created to solve the problem of adaptability in machine bure aucracy. By overlaying another level of administ ration that could add and subtract divisions, the organization found a way to adapt itself to new conditions and to spread its risk. But there is another side to these arguments. Some evidence suggests that the control systems of these structures discourage risk taking and innovation, that the division head who must justify his or her performance every month is free to experiment the way the independent entre- preneur is. Moreover, to spread risk is to spread the conse- of that risk, a disaster n one division can pull down the entire organization.