Organization Design
- Topics:
- Re-engineering
- Tags:
- Hierarchy,
- Human Resources,
- Management,
- Organization Design,
- Organizational Structure,
- Strategic Planning,
- Strategy,
- University Of Chicago
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Overview: This paper explains organization structure based on optimal coordination of interactions among activities. The main idea is that each manager is capable of detecting and coordinating interactions only within his limited area of expertise. The optimal design of the organization trades off the costs and benefits of various configurations of managers. The paper classifies the characteristics of activities and managerial costs that lead to the matrix organization, the function hierarchy, the divisional hierarchy, or a flat hierarchy. The white paper also looks into the effect of changing the fixed and variable costs of managers on the nature of the optimal organization, including the extent of centralization.
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Format: PDF | Size: 442KB | Date: Feb 2000 | Pages: 49
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