Organizational design principles and structures

¶ … Anatomy of Organizational Design (Kimberly, 1984) the author convincingly shows how the disciplines inherent and supporting organizational design frameworks must be inclusive of factors which have in the past been left out of its constructs and frameworks in the past. The author first defines progress in organizational design as the continual questioning of long-held structural components of an organization as being relevant for its future (Kimberly, 1984). Instead of merely illuminating how quickly frameworks can become outmoded and useless in a rapidly changing organizational climate however the author uses a series of metrics and frameworks to explain why the trajectory of change must be so closely monitored. In doing this he evokes many of the classical concepts of organizational design change management theory (Hax, Majluf, 1981). These are highly effective for making this point that ignoring the trajectory of change in an organization's structure often leads to its value to customers, stakeholders and the myriad of others who rely on it for value also seeing a significant drop in relevance (Kimberly, 1984).

Organizational structure then defines the nature of how an organization delivers value, and it also dictates its value delivered, structure of overall value chain interactions and the role of associates and employees in enabling the creation of value (Kimberly, 1984). With so much being dependent on the nature of an organizational structure the author argues that there needs to be a more iterative approach to the defining and continual refining of organizational structures if they are to stay relevant and focused on market opportunities over time. There also needs to be more of an orientation on creating organizational structures that can also span globally with greater efficiency than has ever been the case in the past. The most prevalent examples the author includes are organizations he has worked with that have held onto static, rigid organizational structures that have outlived their usefulness and as a result failed to meet the needs of the stakeholders relying on them (Kimberly, 1984). From this context the author shows how a lack of awareness of and continual investing in organizational design can often lead to the gradual decline and disappearance of a firm over time. The use of foundational theories of organizational design defining structure are pervasively used, showing how, even thirty years ago, the concepts of organizational agility and stability are indispensable in defining profitable firms that can stay focused on customers and stakeholders (Hax, Majluf, 1981).