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Organisational
Design Enablers
Key parts of Organization
Type of Decentralization
Together they can build different design
configurations to fit the contingencies in
the environment
Organizational
agility, stability
Reportings and
operations
Key Roles,
responsibilities,
and staffing
Prime coordinating mechanism
Design Configurations
Simple Structure Machine Bureaucracy Adhocracy
Divisionalized form
Professional Bureaucracy
Correct identification and use of these
basic dimensions are important
Other general characteristics
Formalisation
5
More strictly rules are enforced…
…the lower the rate of
organisational innovation
Stratification
6
Higher the number of status levels within the
organisation…
…. the lower the rate of organisational
innovation
The greater the number of task
differentiation and occupational
professionalism of units…
….the greater the rate of innovation
Complexity
Requisite variety is an aspiration of
organisations to deal with the diversity of
problems the world throws
Requisite Variety
Requisite variety can be achieved
through making…… internal and
external environmental scanning to
be a responsibility of all members
Slack
9
Organisational slack is the resources available to
the firm which are not committed to a necessary
expenditure
Organisational slack about something extra,
about a certain surplus, or cushion
Production
The higher the emphasis on quantity vs
quality, the lower the rate of
organisational innovation
Low formalisation
Low stratification
High complexity
High requisite variety
High slack
High quality

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organizational design enabler.pdf

  • 2. Key parts of Organization Type of Decentralization Together they can build different design configurations to fit the contingencies in the environment Organizational agility, stability Reportings and operations Key Roles, responsibilities, and staffing Prime coordinating mechanism
  • 3. Design Configurations Simple Structure Machine Bureaucracy Adhocracy Divisionalized form Professional Bureaucracy
  • 4. Correct identification and use of these basic dimensions are important Other general characteristics
  • 5. Formalisation 5 More strictly rules are enforced… …the lower the rate of organisational innovation
  • 6. Stratification 6 Higher the number of status levels within the organisation… …. the lower the rate of organisational innovation
  • 7. The greater the number of task differentiation and occupational professionalism of units… ….the greater the rate of innovation Complexity
  • 8. Requisite variety is an aspiration of organisations to deal with the diversity of problems the world throws Requisite Variety Requisite variety can be achieved through making…… internal and external environmental scanning to be a responsibility of all members
  • 9. Slack 9 Organisational slack is the resources available to the firm which are not committed to a necessary expenditure Organisational slack about something extra, about a certain surplus, or cushion
  • 10. Production The higher the emphasis on quantity vs quality, the lower the rate of organisational innovation
  • 11. Low formalisation Low stratification High complexity High requisite variety High slack High quality