Towards a Model of Designing an Organizational Structure in a Knowledge Based Society

The role of the manager in the knowledge society is to lead, in a productive and cost effective manner, a system that is at the crossroads of three worlds: the environment, the human and the organization. To ensure the continuity of the organization, the manager must choose an appropriate structure that would enable it to increase productivity, improve quality of goods and maintain the motivation, satisfaction and involvement of the human factor. Changes promoted by the influences of organizational theories and knowledge management have resulted in reducing the emergence of hierarchical levels, formal control, in a low degree of formalization in general and in the emergence of deconstructed forms. The concept of organizational design is promoted by structuring the organization and seeks to ensure consistency among strategy, structure and incentive systems of the organization, an idea which also represents the basis of the organizational perspective imposed by Mintzberg(1990). This paper builds upon the three main theories that have influenced the design of organizational structure and proposes an integrated model that takes into account the changes promoted by knowledge management and aims at satisfying human resources quantification.structure, organizational design, knowledge management, contingency, model, approach

Organizational structure and performance in Dutch SMEs

The relationship between organisational structure and performance has received little attention over the past few decades, especially in regards to firms with less than 100 employees. All too often, the stereotype of SMEs as unstructured, informal 'adhocracies' is heard. Based on the study of a stratified sample of more than 1400 Dutch SMEs (in three size classes and nine economic sectors) we show that this stereotype is false. We derive a set of typical organisational structures. We further investigated the circumstances under which these structures seem to perform well, and the circumstances under which they appear to perform poorly. Un update of this report is made on Januari 2005 (N200420).

On Organizational Configurations

[Excerpt] To manage organizations in ways that will make our society manageable, we need to spark innovations in management. Consider the organization in which you work. What configuration does it have and what does that tell you? What might you do to enhance the strengths and minimize the weaknesses of its structure

Process-based Organization Design Model: Theoretical Review and Model Conceptualization

The complexity of today's business world is translated into complexity of the company's organization design (Galbraith, 2002). Organizations are forced to quickly adapt to emerging complexity if they want to survive. The change is addressing all areas of business, especially questioning organizational effectiveness and trying to find optimal solutions for doing business. In accordance with requirements, competitive trends are pushing executives to rethink traditional design configurations. Factors such as increased competition in cost, quality and service, and technical change have forced companies not only to seek out new ways of doing old tasks, but also new ways of organizing either old or new tasks (Cross, 1990). Such focus on the flow of work within organizations, but as well as between them, is emphasizing process orientation as a new management paradigm. Inefficiencies of the two most commonly present structures – functional and divisional, in addition to emerging business trends, place the emphasis on a process-based organization as one of the possible solutions. The process-based organization is lead by the process paradigm, which is focused on the horizontal view of business activities and alignment of organizational systems towards business processes. Regardless of a large interest on business processes, existing organization design theory offers only general guidelines for process-based organizations or more precisely, a process-based organization design model. Consequently, the purpose of the paper is to demystify process-based organization design model. By clearly distinguishing between different levels of process orientation, and by addressing characteristics of the chosen model the paper will lead to better understanding of this way of organizing. Eventually, an operationalized model of process-based organization is developed. Furthermore, the paper elaborates on differences between process-based and other organizational structures and philosophies (e.g. functional, product, matrix, project, team-based). Besides structural elements, which will be in the primary focus, the paper will discuss the alignment of all other important organization design elements for process environment (e.g., management style, reward systems, performance metrics, people practices, organizational culture, etc.). There would be proposed necessary adjustments of organizational elements which should be aligned with the process-based structural solution. In such way, some of the blind spots of process-based organization design model would be revealed, providing practical implications for its implementation and ultimately, offering solution for rising business complexity.organization design, process-based organization, process-based organization design model, business processes

Organizational time: a dialectical view

We present twelve propositions constituting a contribution to a contingency view of time in organizations and synthesize apparently opposite perspectives of time. To articulate them, we relate the planning, action and improvisation strategic orientations to the dependent, independent and interdependent perspectives of the environment. Then, we relate these strategic orientations related to approaches to the problems of scheduling, synchronization and time allocation. Action strategies rely on event time to handle scheduling, use entrainment to synchronize with their environment and view time as linear. Planning strategies use even time to handle scheduling, impose their internal pacing upon the environment and view time as cyclic. Improvisation strategies use even-event time to handle scheduling, synchronize via internal-external pacing and hold a spiral view of time. Our argument strengthens the case for a more deliberate approach to time in organizations and favors a dialectical view of organizational phenomena.action, contingency, dialectics, improvisation, planning, synthesis, time

Market forces, strategic management, HRM practices and organizational performance, a model based in european sample

This study uses structural equation modeling to test a model of the impact of human resources management practices on perceived organizational performance, on a large sample of European companies. The influences of competitive intensity, industry attractiveness and strategic management are considered in the model, and their direct and indirect influence on organizational performance is assessed. The model produced an adequate fit and results show that strategic management does influence human resource practices. Human resource flexibility practices and performance management have a positive impact on organizational performance, while training was not found to have a significant impact. A direct positive impact of competitive intensity and industry attractiveness on strategic management was supported by the data, as well as a direct positive effect of industry attractiveness on perceived organizational performance.

Management as a Symbolizing Construction?

In this article, we outline the concept of management as a symbolizing construction. According to Niklas LUHMANN, organizations process by referring to decisions. But decisions are not simply "given" and in principle invisible. This is the reason why organizations institute formalities like protocols, signatures or other insignia of the official that symbolize the decision—without actually being a decision. These symbols allow for making decisions "process-able." And just like a protocol or a signature, management symbolizes decisions as well. Management provides an organizational practice with symbols of decision making without being the "unity" of the decisions, as decisions perpetually have to be reconstructed, redefined and rearranged in the communication of all organizational units. Therefore management symbolizes on the one hand more than it can achieve. On the other hand the importance of management as a symbolizing construction lies in allowing the reconstruction, redefining and rearrangement of decisions by making them visible and recognizable. Heroic managers, meetings, management tools and procedures are solutions to the paradox of decision making. By symbolizing decidedness they create credibilities that conceal the self-referential construction of organizational communication and the paradox of its decision praxis

Application of Information Processing Theory on the inter-relationship of organizational culture and organizational structure

Conference Theme: Securing high Performance through Cultural awareness and Dispute AvoidanceA conceptual model of the inter-relationship between organizational culture and organizational structure has been formulated. However, it is still unable to explain the direction of interaction of organizational culture and organizational structure in real day-to-day operation. This paper explains this relationship through the application of Information-Processing Theory. It has been established that, on one hand, organizational structure modifies organizational culture and, on the other hand, organizational culture determines organizational structure. Based on the Information-Processing Theory, it is hypothesized that a good fit between organizational structure and organizational culture, has a positive relationship with the effectiveness of the organization. This model is illustrated by an empirical study of the Facilities Management Unit (FMU) of a public health care institution. The information-processing requirements of organizational culture and information-processing capacities of organizational structure of FMU are measured through a questionnaire adopted from the Competing Values Model and a self-administered questionnaire respectively. Preliminary results show that the information-processing requirement of the FMU is high as the organizational culture is dominated by clan. However, the information-processing capacity of the FMU is low as the organizational structure is highly formalized and centralized while the level of integration is only medium. The organizational culture of the FMU is not fitted by its organizational structure.postprin