Learning objectives

At the end of this chapter you should be able to:

• understand the problems created by organizational structure, systems and processes in achieving strategic aims;

• identify different types of organizations and know when they are appropriate to changing strategic environments;

• apply three well-known frameworks to the analysis of organizational problems;

• suggest creative solutions to these problems, based on rigorous research;

• understand why organizations change from simple to more complex structures, and the problems accompanying these changes;

• understand the strengths and weaknesses of new organizational forms, including virtual and networked structures;

• apply a rigorously researched test of effective organizational design to your own organization or one with which you are familiar.

Introduction

According to John Roberts, a writer whose work won The Economist Book of the Year prize in 2004, 'the most fundamental responsibility of general managers is setting strategy and designing the organization to implement it' (Roberts, 2004, p. ix). Designing organizations and managing in the organizational context refers to the tasks of understanding, analysing and designing structures, systems and processes to coordinate and motivate large numbers of people undertaking interconnected activities, often in different locations. At this level, managers have to take more macro-level decisions than those affecting only individuals and teams. These decisions can have significant consequences for the strategic aims of the organization, because it is through organizational structure that strategy becomes realized. Consequently, it is extremely important that you understand some of the basic design principles of organization and the potential advantages and drawbacks...