This document discusses key aspects of organizational design including types of decentralization, coordination mechanisms, design configurations, and characteristics that impact organizational innovation. Some of the main characteristics discussed are formalization, stratification, complexity, requisite variety, slack, and emphasis on quality versus quantity in production. The document stresses that correctly identifying and applying these basic dimensions is important for organizational design.

1. Organisational
Design Enablers

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