The document discusses four key organizational design challenges that managers face: differentiation, coordination, centralization, and adaptability. It describes how increasing differentiation among roles and subunits requires greater integration to ensure coordination. Managers must also balance centralization of decision-making with decentralization to allow flexibility. Finally, organizations need structures that can standardize processes but also allow for adaptation through mutual adjustment. The challenges shape two basic structural types - mechanistic, suited to stable environments, and organic, for dynamic settings. The contingency approach advocates designing structures based on an organization's environment.

1. Organizational Theory, Design, and Change Sixth Edition Gareth R. Jones Chapter 4 Basic Challenges of Organizational Design

6. Figure 4.1: Design Challenge

7. Figure 4.1: Design Challenge (cont.)

8. Figure 4.1: Design Challenge (cont.)

9. Figure 4.1: Design Challenge (cont.)

10. Figure 4.1: Design Challenge (cont.)

17. Figure 4.2: Building Blocks of Differentiation

19. Figure 4.3: Organizational Chart of the B.A.R. and Grille

20. Figure 4.4: Organizational Design Challenges

26. Table 4.1: Types and Examples of Integrating Mechanisms

27. Figure 4.5: Integrating Mechanisms

28. Figure 4.5: Integrating Mechanisms (cont.)

29. Figure 4.5: Integrating Mechanisms (cont.)

38. Figure 4.6: How the Design Challenges Result in Mechanistic and Organic Structures

39. Figure 4.7: Task and Role Relationships

41. Figure 4.8: Fit Between the Organization and Its Environment

43. Table 4.2: The Effect of Uncertainty on Differentiation and Integration in Three Industries

45. Figure 4.9: Functional Differentiation and Environmental Demands

47. Figure 4.10: Relationship Between Environmental Uncertainty and Structure