Theory of organizational design

The three major organizational design challenges are:

• Balancing differentiation and Integration
• Balancing centralization and decentralization
• Balancing standardization and mutual adjustment

Recommendations for the major organizational design challenges are:

1. Make a map of the principal mechanisms of Integration between the departments that you interact with most. If there is not enough integration create new mechanisms.
2. Determine which levels in the hierarchy have the responsibility for approving which decisions. Use your findings to decide how centralized and decentralized decision making is your organization. Discuss with peers, subordinates and supervisors.
3. Make a list of your principal tasks and role responsibilities and then list the Rules and standards or procedures that specify how you are to perform your duties. Determine the appropriateness of these and suggest ways of changing them.
4. Be aware of the informal rnorms and values that influence the way members of your work group or department behaviors.

Mechanistic structures	Organic structures
Individual Specialization	Joint specialization
Simple Integration mechanisms (Hierarchy of authority)	Complex Integration mechanisms (Team and Task force)
Centralization	Decentralization
Standardization	Mutual adjustment

Part of: Organizational Theory, Design, and Change