The imperfect hiding : some introductory concepts and preliminary issues on modularity

In this work we present a critical assessment of some problems and open questions on the debated notion of modularity. Modularity is greatly in fashion nowadays, being often proposed as the new approach to complex artefact production that enables to combine fast innovation pace, enhanced product variety and reduced need for co-ordination. In line with recent critical assessments of the managerial literature on modularity, we sustain that modularity is only one among several arrangements to cope with the complexity inherent in most high-technology artefact production, and by no means the best one. We first discuss relations between modularity and the broader (and much older within economics) notion of division of labour. Then we sustain that a modular approach to labour division aimed at eliminating technological interdependencies between components or phases of a complex production process may have, as a by-product, the creation of other types of interdependencies which may subsequently result in inefficiencies of various types. Hence, the choice of a modular design strategy implies the resolution of various tradeoffs. Depending on how such tradeoffs are solved, different organisational arrangements may be created to cope with ‘residual’ interdependencies. Hence, there is no need to postulate a perfect isomorphism, as some recent literature has proposed, between modularity at the product level and modularity at the organisational level

THE ROLE OF INTERDEPENDENCE IN THE MICRO-FOUNDATIONS OF ORGANIZATION DESIGN: TASK, GOAL, AND KNOWLEDGE INTERDEPENDENCE

Interdependence is a core concept in organization design, yet one that has remained consistently understudied. Current notions of interdependence remain rooted in seminal works, produced at a time when managers’ near-perfect understanding of the task at hand drove the organization design process. In this context, task interdependence was rightly assumed to be exogenously determined by characteristics of the work and the technology. We no longer live in that world, yet our view of interdependence has remained exceedingly task-centric and our treatment of interdependence overly deterministic. As organizations face increasingly unpredictable workstreams and workers co-design the organization alongside managers, our field requires a more comprehensive toolbox that incorporates aspects of agent-based interdependence. In this paper, we synthesize research in organization design, organizational behavior, and other related literatures to examine three types of interdependence that characterize organizations’ workflows: task, goal, and knowledge interdependence. We offer clear definitions for each construct, analyze how each arises endogenously in the design process, explore their interrelations, and pose questions to guide future research

Business Trends and Tendencies in Organization Design and Work Design Practice:Identifying Cause-and-Effect Relationships

Current global business environment has a strong impact on theory and practice of organizations, as well as on working behavior of their employees. Increased complexity and competitiveness is changing settled ways of organizing and working. The ultimate search for the holy grail of achieving organizational effectiveness through better design solutions is gaining momentum. There are many possible areas and means for improvement. Great opportunities emerge from better understanding of contemporary organization and work environment. To seize them, the link between organization design and work design tendencies will be emphasized. Through an in-depth theoretical research on current business trends and their impact on the changing nature of work in organizations, potentially very strong patterns between these two different environmental categories and levels of analysis will be identified. Our extensive analysis of current trends and tendencies in organization design and work design field will provide useful insights for business practitioners and researchers.business trends, organization design, work design, systems approach

The imperfect hiding: Some introductory concepts and preliminary issues on modularity.

In this work we present a critical assessment of some problems and open questions on the debated notion of modularity. Modularity is greatly in fashion nowadays, being often proposed as the new approach to complex artefact production that enables to combine fast innovation pace, enhanced product variety and reduced need for co-ordination. In line with recent critical assessments of the managerial literature on modularity, we sustain that modularity is only one among several arrangements to cope with the complexity inherent in most high-technology artefact production, and by no means the best one. We first discuss relations between modularity and the broader (and much older within economics) notion of division of labour. Then we sustain that a modular approach to labour division aimed at eliminating technological interdependencies between components or phases of a complex production process may have, as a by-product, the creation of other types of interdependencies which may subsequently result in inefficiencies of various types. Hence, the choice of a modular design strategy implies the resolution of various tradeoffs. Depending on how such tradeoffs are solved, different organisational arrangements may be created to cope with 'residual' interdependencies. Hence, there is no need to postulate a perfect isomorphism, as some recent literature has proposed, between modularity at the product level and modularity at the organisational level.

Authority in the Context of Distributed Knowledge

The notion of distributed knowledge is increasingly often invoked in discussions of economic organization. In particular, the claim that authority is inefficient as a means of coordination in the context of distributed knowledge has become widespread. However, very little analysis has been dedicated to the relation between economic organization and distributed knowledge. In this paper, we concentrate on the role of authority as a coordination mechanism under conditions of distributed knowledge, and also briefly discuss other issues of economic organization. We clarify the meanings of authority and distributed knowledge, and criticize the above claim by arguing that authority may be a superior mechanism of coordination under distributed knowledge. We also discuss how distributed knowledge influences the boundaries of firms. Our arguments rely on insights in problem-solving and on ideas from organizational economics.Distributed knowledge, existence of authority, problem-solving, the boundaries of the firm

Uncovering the hidden costs of offshoring: The interplay of complexity, organizational design, and experience

This study investigates estimation errors due to hidden costs—the costs of implementation that are neglected in strategic decision-making processes—in the context of services offshoring. Based on data from the Offshoring Research Network, we find that decision makers are more likely to make cost-estimation errors given increasing configuration and task complexity in captive offshoring and offshore outsourcing, respectively. Moreover, we show that experience and a strong orientation toward organizational design in the offshoring strategy reduce the cost-estimation errors that follow from complexity. Our findings contribute to research on the effectiveness of sourcing and global strategies by stressing the importance of organizational design and experience in dealing with increasing complexity

Modularity in action.GNU/Linux and free/Open source sotfware development model unleashed.

Organizational and managerial theories of modularity applied to the design and production of complex artifacts are used to interpret the rise and success of Free/Open Source Software methodologies and practices in software engineeringmodularity; software project management; free/open source software; division of labor; coordination; information hiding

A Framework for Understanding the Interdependencies between Mass Customization and Complexity

Mass customization is a business strategy that aims at satisfying individual customer needs, nearly with mass production efficiency. It induces a high complexity level because of various customer requirements and a steadily changing environment. However, mass customization has some potential to reduce complexity. The interdependencies between mass customization and complexity are discussed in order to demonstrate that mass customization is not just an oxymoron linking two opposite production concepts, but a business strategy that contributes towards reaching a competitive advantage. On the one hand, mass customization increases the production program, manufacturing and configuration complexities. On the other hand, it contributes to reduce complexity at the levels of order taking process, product and inventories. The main results attained through the analysis are integrated in a comprehensive framework that shows the complexity increasing and complexity decreasing aspects due to mass customization.Mass Customization; Complexity Management; Product Variety

From Project Management to Program Management: An Invitation to Investigate Programs Where IT Plays a Significant Role

Information technology is an inherent component of major change initiatives that organizations undertake. However, the increasing technological complexity involved in achieving the benefits of these change initiatives means that organizations must substantially revise management policies and procedures to create and deploy information technology across multiple functional areas and longer time horizons. Industries, governments, professional societies, and early researchers consider prior management practices inadequate and are moving toward practices that promote the integration of multiple functions, projects, environments, and stakeholders to best achieve the benefits of the chosen change. In this editorial, we discuss previous research, highlight key findings, and raise questions about the process of managing multiple projects in change initiatives that contain significant information technology—also known as program management

Negotiating the 'trading zone'. Creating a shared information infrastructure in the Dutch public safety sector

Our main concern in this article is whether nation-wide information technology (IT) infrastructures or systems in emergency response and disaster management are the solution to the communication problems the safety sector suffers from. It has been argued that implementing nation-wide IT systems will help to create shared cognition and situational awareness among relief workers. We put this claim to the test by presenting a case study on the introduction of ‘netcentric work’, an IT system-based platform aiming at the creation of situational awareness for professionals in the safety sector in the Netherlands. The outcome of our research is that the negotiation with relevant stakeholders by the Dutch government has lead to the emergence of several fragmented IT systems. It becomes clear that a top-down implementation strategy for a single nation-wide information system will fail because of the fragmentation of the Dutch safety sector it is supposed to be a solution to. As the US safety sector is at least as fragmented as its Dutch counterpart, this may serve as a caveat for the introduction of similar IT systems in the US