I. INTRODUCTION TO ORGANIZATIONAL DESIGN
- Definition and scope of organizational design. Fundamental concepts. Organizations as open systems. The relationship between strategy and organizational structure.
- Classical and contemporary approaches to organizations and management. Fayol, Taylor, and Weber. Human relations, contingency theory, and resource dependence. Other organizational theories.
- Elements of organizational design. Coordination mechanisms. Centralization versus decentralization. Differentiation and integration. Formal and informal systems.
- The organization and managerial/executive functions. Definition and scope. Types of management decisions. Design of the decision-making system. Authority, leadership, and power. Delegation and empowerment. Decision-making and governance
II. ORGANIZATIONAL MICROSTRUCTURE
- Micro-organizational design: Definition and scope - micro-design versus macro-design. Job description.
- Elements of the micro-structure: Division and specialization of labor, coordination mechanisms at the micro level, formalization and standardization, grouping of jobs into units, spans of control, and chains of command.
- Contingent and strategic factors affecting micro-design: Cultural and contextual factors, information and communication systems, technological interdependencies between jobs, automation, and Artificial Intelligence (AI), employee motivation, and needs.
III. ORGANIZATIONAL MACRO DESIGN
- Elements of macrostructure: formal and informal structures, authority and hierarchy systems, centralization and decentralization, control and coordination systems, and organizational differentiation and integration.
- External and internal contingent factors in macro-organizational design include the general and specific environment, ownership, stakeholders, and other interest groups, technological change, strategy and structure, size, sector, growth, and organizational (re)design. There is interdependence between structure and organizational culture, structure-power tensions, and the legitimacy of the structure along with internal acceptance.
- Basic structural configurations consist of functional structure, divisional structure (by product, geography, market), and matrix structure, along with the advantages and disadvantages of each configuration.
- Parameters of macro-organizational design involve the grouping of units, structural elongation versus flattening, specialization and departmentalization, formal systems, processes, and procedures for planning and control, as well as professional versus mechanical bureaucracy. Coordination and integration mechanisms, types of coordination mechanisms (Mintzberg), integrator roles, and lateral structures are also included, with information systems serving as integrating mechanisms.
- Advanced configurations encompass network organizations, virtual organizations, team-based organizations, adhocracies, holocracies, and ambidextrous organizations (exploration and exploitation). Agile organizations: principles and practices, technology platforms, and digital business models are also discussed.
IV. CURRENT CHALLENGES FOR ORGANIZATIONAL DESIGN
- Future trends include adaptive structures, with digitalization, automation, and AI as structural determinants. ESG integration in organizational design, the future of work and its impact on organizational design, leadership in complex structures, and the management of networks versus hierarchies are also key considerations.