Rethinking organizational design

Abstract

Executive Overview Organizational design has become a never-never land of proliferating metaphors and methods. Managers are understandably confused by the welter of advice that comes at them by way of competing writers, consultants, and trainers. Much of the clutter can be eliminated by grouping design approaches into one of three categories: (1) restructuring (organizational unit solutions): (2) reengineering (organisational process solutions); or (3) rethinking (organizational cognition). Restructuring is typically concerned only with shareholder well-being; reengineering addresses the needs of both shareholder and customer; rethinking responds to the claims of shareholders, customers, and employees. Rethinking offers the best long-term prospects because it clarifies organizational complexity without trivializing it. Organization is conceptualized as a balance of hierarchical control, individual autonomy, and spontaneous cooperation. Situational guidelines, and recommendations for redesign in the face of financial pressures, are presented.