Scholars have long understood that structuring internal work processes into more hierarchical or teambased arrangements has consequences for organizational outputs. Building on this insight, this research examines the relationship between how agencies organize their rulemaking routines and the resulting rules. Tracking the job functions of rule contacts for economically significant rules proposed over a four-year period, the analysis demonstrates that expanding the breadth of personnel types closely involved in a rulemaking is associated with a reduction in the time it takes to promulgate the rule. However, increasing the pace at which rules are finalized is not without cost, as those completed faster appear more likely to be overturned when challenged in court. The article not only adds another dimension to empirical scholarship studying rulemaking, which has largely focused on how forces originating outside the agency affect rules, but also suggests the importance of considering competing priorities in designing rulemaking processes.
Evidence for Practice• While most agencies that promulgate rules incorporate the perspectives of a diverse set of employees, including subject matter experts, economists, and attorneys, they differ significantly with respect to when in the rulemaking process these varied viewpoints are consulted. • Rulemaking processes that emphasize team-based structures, in which relevant perspectives are included from the beginning, typically produce rules that are promulgated faster than hierarchical structures, in which rules are primarily written by the program office and subject to later approval by other groups in the agency. • Rules that are finalized more quickly appear more likely to be overturned when challenged in court, suggesting that a trade-off exists in using team-based organizational designs compared with more hierarchical approaches. • Consistent with findings from studies in other organizational contexts, the noticeable differences in the timing and character of rules emanating from regulatory agencies using more team-based approaches are contingent on fostering a greater breadth of competencies among core group members. • In contrast to the procedural requirements that agencies face, such as notice and comment and executive review, agency and departmental leadership typically have great latitude in structuring rulemaking processes in their organizations, suggesting a promising lever for managers to affect rulemaking outputs.