Organization Design - a brief note on main theoretical frameworks

My primary understanding of organization design is very much based on Henry Mintzberg (1983). For Mintzberg, an organization has 5 basic parts: (a) strategic apex, (b) middle line, (c) operating core, (d) technostructure and, finally, e) support staff. Mintzberg proposes that there are five views of how an organization functions, namely, (a) the flow of formal authority, (b) the of regulated activity, (c) the flow of informal communication, (d) the set of work constellations, and (e) the flow of ad hoc decision processes.

Based on this model, Mintzberg discerns 5 basic organization configurations: (a) simple structure, (b) machine bureaucracy, (c) professional bureaucracy, (d) divisionalized form and (e) adhocracy. These organization configurations make use of 5 coordinating mechanisms to various extents: (a) mutual adjustments, (b) direct supervision, (c) standardization of input skills, (d) standardardization of work processes, and (e) standardization of outputs. These five coordinating mechanisms are substitutable to a certain extent.

A key question on this subject of organization design is which form of organization configuration is most effective for a specific company. On that, Mintzberg explains that organization design covers a 3 key design domains: (a) individual position design, (b) superstructure design, and, finally, (c) superstructure linkage design. I like to point out that the discussion on superstructure design (Mintzberg, 1983, Chapter 3) is very much related to the topic of organization structure. Mintzberg maintains that organization design should be done in a way that achieves an internal consistency as well as a consistency with the organization's internal and external situations. Mintzberg offers a contigency framework that identifies a number of pulling and pushing forces that interact with each others to mold a specific organization configuration for an enterprise. In Ho and Jackson (1987), Mintzberg's ideas on organization  configuration and the various pulling/ pushing forces were considered in problem-context exploration.

My favoured criteria of effective organization design come from two systems models. They are the Viable System Model of Stafford Beer and the socio-technical systems model. Over the years, I have also come across various organization design theories; however, I tend to use these three theories identified here, ie, the Organization Configuration Model of Mintzberg, the Viable System Model (see Espejo and Harden (1989).) and the Socio-technical Systems Model (see Pava (1983).), as the theoretical frameworks to examine others' works.

For students new to the subject of organization design, try to study the following basic concepts for a start:

1. Centralization vs decentralization
2. Delegation vs empowerment
3. Formal vs informal organizational structure
4. Organization chart
5. Organizational  structure
6. Scalar principle
7. Tall vs flat organizational structure

Related blog article: http://josephho33.blogspot.hk/2012/09/organization-structure-discussion-agenda.html




References

1. Espejo, R. and Harnden, R. (editors) (1989) The Viable System Model, Wiley.
2. Guidelines for organization design: http://managementhelp.org/organizations/design.htm
3. Ho, J.K.K. and Jackson, M.C. (1987) "Building a "rich picture" and assessing a 'quality management" program at Thornton Printing Company", Cybernetics and Systems, Vol. 18: 381-405.
4. Mintzberg, H. (1983) Structure in Fives: Designing effective organizations, Prentice Hall.
5. Pava, C.H. (1983) Managing New Office Technology, The Free Press.