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Who designs organizations and, in general, what do these designers do? What are the major factors influencing organizational design? What do managers actually design? How can you predict whether an organizational design will be effective? What are some unconventional approaches to organizational design? How can you identify the fundamental organizational types and anticipate their strengths and weaknesses?
Theory of equifinality: given the same constraints, there is more than one way to design organizations to achieve effectiveness The subjective side of organizational design: Metaphor and the collective paradigm: what actually causes the creation, maintenance and change of organizations is the invisible agreement in consciousness of the organizations members, known as the members collective paradigm, sometimes described using metaphors
2007 Prentice Hall
The bureaucracy
A highly systematized organization aimed at efficiency Daily work is planned, programmed, prescribed, scheduled, and directed by the book Often found in mature markets in which demand for their product is well established or perhaps even falling Efficiency and, often, quality are the main strategies on which they compete
2007 Prentice Hall
The enterprise
Adapt quickly in business environments that are dynamic, complex, and uncertain Daily work is extemporaneous, improvised, spontaneous, and directed by discussion and teamwork Goals and results are custom-designed and creative/innovative
Summary Who designs organizations and, in general, what do these designers do?
Organizational designers are typically top managers or consultants They look for optimal combinations of organizational characteristics to achieve organizational outcomes
Summary How can you predict whether an organizational design will be effective?
In a synergistic organizational design different elements of the company interact together in a coherent pattern Examples of synergistic designs are bureaucracies and enterprises According to contingency theory, as long as its organizational design fits its organizational constraints, either a bureaucracy or an enterprise can be effective
Summary How can you identify the fundamental organizational types and anticipate their strengths and weaknesses?
A bureaucracy is a highly systematized organization aimed at efficiency Classic bureaucracies differ from professional bureaucracies An enterprise is a highly flexible organization that adapts quickly in dynamic business environments A hybrid is an organization comprised of distinct elements, some of which are bureaucratic and some of which are enterprising
2007 Prentice Hall