Organization Effectiveness : Situation Analysis | Strategy Enhancement | Organinzation Design | Job Design | Communication Links | Implementation | Leadership Dynamics | Reward Systems
Organization Design
As David Nadler and Michael Tushman write in their heralded 1997 book Competing by Design: The Power of Organizational Architecture
"the last remaining source of truly sustainable competitive advantage lies in "organizational capability": the unique ways each organization structures its work, builds its cultures, and motivates its people to achieve clearly articulated aspirations and strategic objectives."
Different from the "back-of-the-envelope boxes and wires" design, comprehensive organization design must first consider how the design will affect implementation of the strategy and competitive advantages of the organization. Communication requirements, attention to issues of culture, reward systems (formal and informal), turbulence of the environment, span of control/communication, etc., must all be addressed.
Once the strategy is confirmed, the organization design follows in two stages:
- Strategic Design is defining the groupings of functional areas and the communication links between these groups.
- Operational Design includes job design, feedback loops, communication and other support systems.
Since 1981, Rochele Hirsch has been diagnosing and designing organizations based on the Model of Organization Performance and related principles of design and implementation first developed by Nadler and Tushman in the late 70's. In addition, she also draws on the works of Jay Galbraith, Ian MacMillan, Edward Lawler III, Edgar Schein, Robert Duncan, and many others.