Part
2
People and Organizations
144
the way in which activities are grouped and
decentralized; the span of control of
managers (the number of separate functions
or people they are directly responsible for);
any overlap between functions or gaps
leading to the neglect of certain activities; the
existence of unnecessary departments, units,
functions or layers of management; the
clarity with which individual responsibilities
and accountabilities are defined.
3
Diagnosis to identify (on the basis of the
activities and structural analyses) the reasons
for any structural problems facing the
organization or function.
4
The choice in the light of the analyses and
diagnosis of how the business or part of it
should be designed or revised.
5
A plan to implement any revisions to the
structure, possibly in phases.
Checklists covering the points that should be con-
sidered in analysing activities and structures are set
out in the organization design toolkit (Chapter 62).
When conducting the review the following factors
should be taken into account.
Changes in the nature of
organizations
As noted by Parker et al (2001: 418): ‘Organizations...
differ from the rather static and inflexible enter-
prises of earlier times. Greater flexibility is required
to enable the rapid delivery of low-cost, high-quality
and customized products, and to provide increasingly
powerful and demanding customers with seamless
service.’ They also noted that the use of teamwork-
ing and other flexible forms of working continues
to grow, distinctions between departments are dis-
appearing as organizations become more integrated,
and IT has changed the way in which work is con-
ducted. These considerations may indicate that a
traditional hierarchical and rigid structure is inap-
propriate and a more flexible approach is required.
Minimum critical specification
In accordance with systems theory (see Chapter 10)
and the principle of equifinality (the premise that
multiple organizational forms are equally effective),
Huczynski and Buchanan (2007: 89) suggested that:
‘It is not necessary to specify in detail the organiza-
tion structure and the duties of each member. If an
organization can develop its own method of operat-
ing and change that as circumstances require, then
it will be necessary only to detail the basic and most
significant aspects. This approach to organization
design is called minimum critical specification.’
Strategic choice
As noted above, there is always choice about what
form an organization structure should take. Child
(1972) explained that in making such choices the
leadership group (the dominant coalition) had to be
persuaded to influence the organization structure
through an essentially political process. He called this
process ‘strategic choice’. Choice analysis regards
debate and negotiation in the social networks exist-
ing in organizations as integral to decision-making
on organizational structures.
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