crises by deciding what they wish to be and then pursuing it
with a healthy obsession.’
Organization design is always an empirical and evolutionary
process for which absolute principles cannot be laid down. But
there are a number of broad guidelines which should be taken
into account even if they are not followed slavishly.
ORGANIZATION GUIDELINES
Allocation of work
Related activities should be grouped logically together into func-
tions and departments. Unnecessary overlap and duplication of
work, either horizontally or vertically within a hierarchy, should
be avoided.
A matrix organization may be developed in which multi-disci-
plinary project teams are created specially to accomplish a speci-
fied task but the members of those teams are responsible on a
continuing basis to a functional leader who allocates them to
projects, assesses their performance, provides rewards and deals
with training and career development needs.
Close attention should be given to the processes within the
business. These are the interconnected sequence of activities
which convert inputs into outputs. Thus, ‘order fulfilment’ is a
process which starts with an order as its input and results in an
‘output’, ie the delivery of the ordered goods. The organization
design should ensure that the flow of such processes can proceed
smoothly, efficiently and effectively.
Business process re-engineering, as described in Chapter 23,
can help to achieve this by subjecting the processes that link key
organizational functions together from initiation to completion
to critical examination and, as necessary, redesign. It is some-
times better to organize these processes properly before
becoming over-involved in the design of rigid structures which
can inhibit the flow of work.
The work that needs to be done and accountabilities for results
should be defined and agreed with teams and individual
jobholders.
Matters requiring a decision should be dealt with as near to
the point of action as possible by individuals or self-managing
teams (see Chapter 47). Managers should not try to do too much
themselves, nor should they supervise too closely.
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