Organization Structures: Theory and Design, Analysis and Prescription (Information and Organization Design Series)

486 Pages·2005·25.59 MB·English

by  Helmy H. Baligh

ORGANIZATION STRUCTURES:
THEORY AND DESIGN, ANALYSIS AND
PRESCRIPTION
Information and Organization Design Series
series editors
Richard M. Burton
Barge Obel
ORGANIZATIONAL LEARNING: Creating, Retaining and Transferring
Knowledge, by Linda Argote
STRATEGIC ORGANIZATIONAL DIAGNOSIS AND DESIGN (2"d Ed.),
by Richard M. Burton and Barge Obel
INFORMATION, ORGANISATION AND TECHNOLOGY: Studies in
Organisational Semiotics, edited by K. Liu, R. Clarke, P. Andersen, R.
Stamper
COORDINATION AND COMMUNICATION USING SIGNS: Studies in
Organisation Semiotics 2, edited by K. Liu, R. Clarke, P. Andersen, R.
Stamper
DESIGNING STRESS RESISTANT ORGANIZATIONS: Computational
Theorizing and Crisis Applications, by Zhiang Lin and Kathleen M.
Carley
STRATEGIC ORGANIZATIONAL DIAGNOSIS AND DESIGN: The
Dynamics of Fit (3rdE d.), by Richard M. Burton and Barge Obel
--
ORGANIZATION STRUCTURES:
THEORY AND DESIGN, ANALYSIS AND
PRESCRIPTION
HELMY H. BALIGH
Duke University, Fuqua School of Business
a
-
springer
Helmy H. Baligh
Duke University, NC, USA
Library of Congress Cataloging-in-Publication Data
A C.I.P. Catalogue record for this book is available
from the Library of Congress.
ISBN-10: 0-387-25847-7 ISBN-13: 978-0387-25847-8
ISBN- 10: 0-387-2831 7-X ISBN- 13: 978-0387-2831 7-3 (e-book)
Copyright 0 2006 by Springer Science+Business Media, Inc.
All rights reserved. This work may not be translated or copied in whole or in
+
part without the written permission of the publisher (Springer Science
Business Media, Inc., 233 Spring Street, New York, NY 10013, USA), except
for brief excerpts in connection with reviews or scholarly analysis. Use in
connection with any form of information storage and retrieval, electronic
adaptation, computer software, or by similar or dissimilar methodology now
know or hereafter developed is forbidden.
The use in this publication of trade names, trademarks, service marks and
similar terms, even if the are not identified as such, is not to be taken as an
expression of opinion as to whether or not they are subject to proprietary rights.
Printed in the United States of America.
9 8 7 6 5 4 3 2 1 SPIN 1 1055723
Dedication
Sara, my wife, and our
daughters Aziza, Magda and
Lailu and our grandchildren
Aziza's daughters, Kenzi and
Nazli, and Laila's son Talib and
daughter Adaira
Contents
CHAPTER 1
STRUCTURE, PERFORMANCE, COST, AND OUTCOME 1
1. STRUCTURE AND PERFORMANCE l
2. AN OVERVIEW 6
3. PRACTICAL NEEDS OF THE ANALYSIS 8
4. BASIC ANALYSIS 13
5. EXAMPLES FROM THE LITERATURE 15
6. RESTATING THE THEORY 20
7. ANALYSIS AND DESIGN 20
8. MULTIPLE ROUTES AND BACKTRACKING 22
9. EFFICIENT STRUCTURES: ORGANIZATIONS AND OTHERS 23
CHAPTER 2
ORGANIZATION STRUCTURES 33
1. COMPONENTS OF ORGANIZATION STRUCTURES 33
2. PEOPLE IN THE STRUCTURE. 33
3. VARIABLES OF THE STRUCTURE 34
4. ASSIGNMENTS OF THE STRUCTURE 36
5. DECISION RULES 36
6. SUBSTRUCTURES 37
7. SOURCE OF EXAMPLES 37
8. DESIGNING THE ORGANIZATION STRUCTURE FOR A SIMPLE
MBC 38
9. THE FIRST STRUCTURE DESIGN 46
10. STRUCTURE COSTS 54
11. MORE ON THE MASTER BREWING Co. EXAMPLE 58
12. Loss OF INNOCENCE AND GAIN OF GENERALITY 60
Vlll
13. THE PIECES OF ANALYSIS 61
14. THE THING AND ITS PROPERTIES 63
CHAPTER 3
PROPERTIES OF THE ORGANIZATION STRUCTURE 65
I. PROPERTIES OF ORGANIZATION SUBSTRUCTURES : THE
OPERATING SUBSTRUCTURE 65
2. LOGICAL OPERATIONS ON COMPONENTS 65
3. PEOPLE AND VARIABLES 67
4. THE SET OF ASSIGNMENTS AND ITS PROPERTIES 68
5. THE SET OF DECISION RULES 70
6. RULE CONSISTENCY AND RULE ADDITION 74
7. DECISION RULE PROPERTIES: MAKERS, USERS, AND GOALS 78
8. DECISION RULE PROPERTIES : MAPPINGS 81
9. PROPERTIES OF INFORMATION SUBSTRUCTURES 86
10. PROPERTIES OF THE REWARD SUBSTRUCTURE 90
II. THEOREMS ON RELATIONS BETWEEN DECISION RULES 92
12. STRUCTURE PROPERTIES OF MBC 93
CHAPTER 4
STRUCTURES: CONNECTIONS, CONSISTENCY AND COSTS 97
1. LEVELS OF DECISION RULE CONNECTIONS 97
2. THE DECISION RULE AND THE TRANSFORMATION 98
3. DECISION PROCESSES 103
4. THEORY AND DESIGN 105
5. MEANING OF CONSISTENCY 108
6. CONSISTENCY WITHIN A SUBSTRUCTURE 108
7. CONSISTENCY BETWEEN SUBSTRUCTURES 110
8. DESIGN COSTS OF THE OPERATING SUBSTRUCTURE 114
9. MAINTENANCE COSTS OF OPERATING SUBSTRUCTURE 119
10. COSTS OF RUNNING THE OPERATING SUBSTRUCTURE 122
11. COSTS OF THE INFORMATION SUBSTRUCTURE 124
12. COSTS OF THE REWARD SUBSTRUCTURE 127
13. SUBSTRUCTURE COSTS AND TECHNOLOGY PROPERTIES 129
14. A SERIES OF BRIDGES 131
CHAPTER 5
PROPERTIES OF TRANSFORMATIONS, ENVIRONMENTS AND
STRUCTURE PERFORMANCES 133
1. CHOOSING THE RIGHT PROPERTIES 133
2. TRANSFORMATIONS AND TECHNOLOGIES 135
3. SOME PROPERTIES OF TRANSFORMATIONS AND TECHNOLOGIES 137
4. TRANSFORMATION CONNECTIONS AND TECHNOLOGIES 140
IX
5. ENVIRONMENTS 142
6. PROPERTIES OF THE ENVIRONMENT 145
7. PERFORMANCE AND OUTCOME 150
8. PERFORMANCE PROPERTIES OF THE OPERATING SUBSTRUCTURE 150
9. PROPERTIES OF THE PERFORMANCE OF THE INFORMATION
SUBSTRUCTURE 154
10. PROPERTIES OF THE PERFORMANCE OF THE INFORMATION
SUBSTRUCTURE 156
11. PROPERTIES AND MASTER BREWING CORPORATION 157
CHAPTER 6
ANALYTIC MAPPINGS: FROM SUBSTRUCTURE
PERFORMANCE AND ENVIRONMENTS TO OUTCOMES 163
1. OUTCOMES OF THE OPERATING SUBSTRUCTURE 163
2. SOME PROPERTIES OF THE OUTCOME FUNCTION 164
3. OUTCOMES OF THE INFORMATION AND REWARD
SUBSTRUCTURES 168
4. GOOD AND BAD PERFORMANCE PROPERTY VALUES I7l
5. OPERATING SUBSTRUCTURE PERFORMANCE AND OUTCOME 172
6. INFORMATION SUBSTRUCTURE PERFORMANCE AND OUTCOME 178
7. REWARD SUBSTRUCTURE PERFORMANCE AND OUTCOME 18 o
8. COMPLEX PERFORMANCE AND OUTCOME RELATIONS 18 2
9. MORE NEEDED 188
10. SOME ADVICE FOR MASTER BREWING 189
CHAPTER 7
ANALYTIC MAPPINGS: FROM STRUCTURE TO
PERFORMANCE, PART ONE 195
1. DECISION RULES AND PERFORMANCE 195
2. STRUCTURE DETERMINES PERFORMANCE 195
3. THE EFFECTS OF TECHNOLOGY PROPERTIES 200
4. EXPANDING THE CONCEPT OF A RULE 201
5. NEW STRUCTURE PROPERTIES FOR OLD 202
6. RULE CONNECTIONS AND PERFORMANCE 207
7. DECISION PROCESSES 210
8. THE SET OF ASSIGNMENTS 213
CHAPTER 8
ANALYTIC MAPPINGS: FROM STRUCTURE TO
PERFORMANCE, PART TWO 221
1. SUBSTRUCTURE CONSISTENCY 221
2. INFORMATION SUBSTRUCTURE PROPERTIES AND ITS
PERFORMANCE 223
3. PERFORMANCES OF THE INFORMATION AND OPERATING
SUBSTRUCTURES 227
4. REWARD SUBSTRUCTURE PROPERTIES AND ITS PERFORMANCE 229
5. PERFORMANCES OF THE REWARD AND OPERATING
SUBSTRUCTURES 231
6. THE FAIRNESS PROPERTY OF THE REWARD SUBSTRUCTURE 232
7. FAIRNESS OF DECISION RULE COMPONENTS 237
8. ORGANIZATION REWARDS AND FAIRNESS 244
9. FAIRNESS AND REWARD SUBSTRUCTURE DESIGN 246
10. THE ELEMENTS OF FAIRNESS 247
11. ADVICE ON PROPERTIES OF MASTER BREWING STRUCTURE 254
CHAPTER 9
THE EFFICIENCY OF THE DESIGN PROCESS 257
1. DECISIONS THAT PRECEDE THE DESIGN PROCESS 257
2. DESIGNING FOR PIECES OF ENVIRONMENT 261
3. DESIGNING FOR PIECES OF TECHNOLOGY 265
4. WHEN TO DESIGN PIECES AND WHEN TO DESIGN WHOLES 266
5. DESIGN EFFICIENCY AND DESIGNING EFFICIENCY 273
6. THE WORK OF COLLECTING THE FACTS FOR DESIGN 275
7. FACTS ON INFORMATION SUBSTRUCTURE 283
8. FACTS ON THE REWARD SUBSTRUCTURE 285
9. OPERATIONAL PROPERTY MEASURES 287
CHAPTER 10
DESIGN MAPPINGS: DESIGN RULE DERIVATION AND USE 289
1. MAPPINGS AND THEIR INVERSES 289
2. DERIVING RULES OF STRUCTURE DESIGN 290
3. FACTS ON TECHNOLOGY 291
4. FACTS ON THE ENVIRONMENT 294
5. FACTS ON OUTCOMES 302
6. FACTS ON PERFORMANCE 304
CHAPTER 11
DESIGN RULES FOR ORGANIZATION STRUCTURE
PERFORMANCE PROPERTIES 311
1. A PROCESS OF DESIGN 311
2. DESIGN RULES 313
3. NATURE AND MEANING OF THE DESIGN RULES 315
4. DESIGN RULES FOR PERFORMANCE PROPERTY VALUES 319