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Organizational Design

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Details

  • 12 tables
  • Page extent: 250 pages
  • Size: 247 x 174 mm
  • Weight: 0.596 kg

Library of Congress

  • Dewey number: 302.35
  • Dewey version: 22
  • LC Classification: n/a
  • LC Subject headings:
    • Organization
    • Corporate culture
    • Psychology, Industrial

Library of Congress Record

Hardback

 (ISBN-13: 9780521851763 | ISBN-10: 0521851769)




Organizational Design



In today's volatile business environment, organizational design is a serious challenge for any manager, whether of a multinational enterprise or a small team. This book sets out a step-by-step approach to designing an organization. All the key aspects of organizational design are covered, including goals, strategy, structure, process, people, coordination and control, and incentives. The text engages with critical issues affecting organizations, such as globalization, worldwide competition, deregulation and ever-new technologies, and contains many helpful features such as end-of-chapter reviews and unique step-by-step diagrams to orientate the reader in the design process. Diagnostic questions help the reader to determine the changes needed in an organization. The action-oriented approach of this text helps the reader to assess and redesign the complex organizations of today, and plan for the information-rich organizations of tomorrow.

RICHARD M. BURTON is Professor of Management at the Fuqua School of Business, Duke University.

GERARDINE DESANCTIS was Thomas F. Keller Professor of Business Administration at the Fuqua School of Business, Duke University.

BØRGE OBEL is Professor of Organization and Management and Rector of the Aarhus School of Business, Denmark.







Organizational Design:
A Step-By-Step Approach

by

Richard M. Burton, Gerardine DeSanctis, and Børge Obel







CAMBRIDGE UNIVERSITY PRESS

Cambridge, New York, Melbourne, Madrid, Cape Town, Singapore, São Paulo

Cambridge University Press

The Edinburgh Building, Cambridge CB2 2RU, UK

Published in the United States of America by Cambridge University Press, New York

www.cambridge.org

Information on this title: www.cambridge.org/9780521617338

©Richard M. Burton, Gerardine DeSanctis and Børge Obel 2006

This publication is in copyright. Subject to statutory exception
and to the provisions of relevant collective licensing agreements,
no reproduction of any part may take place without
the written permission of Cambridge University Press.First published 2006

Printed in the United States of America

A catalogue record for this publication is available from the British Library

ISBN-13 978-0-521-85176-3 hardback
ISBN-10 0-521-85176-9 hardback
ISBN-13 978-0-521-61733-8 paperback
ISBN-10 0-521-61733-2 paperback

Cambridge University Press has no responsibility for the persistence or accuracy of URLs
for external or third-party internet websites referred to in this publication, and does not
guarantee that any content on such websites is, or will remain, accurate or appropriate.







Contents



List of figures page x
List of tables xii
Preface xiii
An outline of the step-by-step approach xv
 
Step 1: Getting started
 
1 Define the scope of the organization and assess its goals 3
 
Introduction: The executive challenge of designing the organization 3
Overview of this book 4
The information-processing view 6
Select an organization for analysis 9
Define the scope of the organization 9
Assess the organization's goals 11
Diagnostic questions 13
Misfits and balancing competing design dimensions 14
Summary 16
Glossary 17
Where are you in the step-by-step approach? 18
 
Step 2: Strategy
 
2 Strategy 23
 
Introduction 23
Reactor 25
Defender 26
Prospector 28
Analyzer without innovation 29
Analyzer with innovation 30
Diagnostic questions 31
Fit and misfits 33
Summary 35
Glossary 35
 
3 Environment 37
 
Introduction 37
Calm environment 44
Varied environment 45
Locally stormy environment 45
Turbulent environment 46
Diagnostic questions 47
Fit and misfits 49
Summary 51
Glossary 51
Where are you in the step-by-step approach? 52
 
Step 3: Structure
 
4 The configuration and complexity of the firm 57
 
Introduction 57
Configuration 58
Simple configuration 59
Functional configuration 61
Divisional configuration 63
Matrix configuration 66
Organizational complexity 69
Blob 70
Tall 70
Flat 71
Symmetric 72
Diagnostic questions 73
Fit and misfits 75
Summary 80
Glossary 80
 
5 Distributed organizations 82
 
Introduction 82
Structures for spanning geography 84
Global 86
International 87
Multi-domestic 88
Transnational 90
Structures for managing knowledge exchange 91
Ad hoc communications 93
Informated 94
Cellular 95
Network 95
Diagnostic questions 96
Fit and misfits 99
Summary 101
Glossary 102
Where are you in the step-by-step approach? 104
 
Step 4: Process and people
 
6 Task design 109
 
Introduction 109
Orderly 112
Complicated 113
Fragmented 114
Knotty 116
Diagnostic questions 117
Fit and misfits 118
Summary 120
Glossary 121
 
7 People 122
 
Introduction 122
Shop 125
Factory 126
Laboratory 127
Office 128
Diagnostic questions 128
Fit and misfits 130
Summary 133
Glossary 133
 
8 Leadership and organizational climate 135
 
Introduction 135
Leadership style 136
Maestro 137
Manager 138
Leader 139
Producer 139
Organizational climate 140
Group 142
Internal process 143
Developmental 144
Rational goal 145
Diagnostic questions 146
Fit and misfits 148
Summary 151
Glossary 151
Where are you in the step-by-step approach? 153
 
Step 5: Coordination and control
 
9 Coordination, control, and information systems 157
 
Introduction 157
Coordination and control systems 158
Family 161
Machine 162
Market 163
Clan or mosaic 164
Information systems 166
Event-driven 168
Data-driven 169
People-driven 169
Relationship-driven 171
Diagnostic questions 172
Fit and misfits 175
Summary 179
Glossary 179
 
10 Incentives 182
 
Introduction 182
Personal pay 187
Skill pay 188
Bonus-based 189
Profit sharing 191
Diagnostic questions 192
Fit and misfits 194
Summary 197
Glossary 197
Where are you in the step-by-step approach? 199
 
Applying the step-by-step approach in a dynamic world
 
11 Design dynamics: managing change and multi-organizations 203
 
Introduction 203
Where are you in the step-by-step approach? 203
What should you change first? Make changes within each step 206
What should you change second? Make changes between steps 207
Why change? Should we live with some misfits? 207
What are the benefits of change? 208
What are the difficulties of change? 208
Managing misfits over time 212
Multi-organization: multiple units of analysis 215
The multi-organization step-by-step approach 217
Joint venture 219
Merger 220
Strategic alliance or partnership 221
Summary 223
Glossary 223
 
References 225
Index 229






List of figures




1.1 Levels in the organizational design process page 10
1.2 The goal space 11
1.3 Making changes in the efficiency/effectiveness space 15
2.1 The strategy space 25
2.2 Locate your organization in the strategy space by rating the levels of exploration and exploitation 33
3.1 The environment space 43
3.2 Locate your organization in the environment space by rating the levels of complexity and unpredictability 49
4.1 The alternative organizational configurations of the firm 59
4.2 A simple configuration 60
4.3 A functional configuration 62
4.4 The divisional configuration with product and information flows 64
4.5 A matrix configuration 66
4.6 The organizational complexity space 70
4.7 Locate your firm in the configuration space 74
4.8 Locate your firm in the organizational complexity space 75
5.1 The organizational design space of structures for spanning geography 86
5.2 Structures for managing knowledge exchange 93
5.3 Locate your organization in the geographic space by rating its degree of local responsiveness and optimal sourcing 98
5.4 Locate your organization in the knowledge exchange space by rating its degree of virtualization and IT-infusion 99
6.1 Task design space 111
6.2 Locate your firm in the task design space 118
7.1 The people space 125
7.2 Locate your organization in the people space 130
8.1 The leadership style space 137


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