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Organization Design (organization + design)

Distribution by Scientific Domains

Business, Economics, Finance and Accounting	100%

Distribution within Business, Economics, Finance and Accounting

General & Introductory Economics	33%

Selected Abstracts

Collusion and Organization Design

ECONOMICA, Issue 285 2005
Kouroche Vafaï
This paper investigates how the possibility of collusion between members of an organization affects the choice of organizational design. We consider a moral hazard environment in which a principal chooses the organizational structure before designing contracts. The principal has the choice between a principal,agent organization, where it monitors the output produced by the agent itself, and a principal,supervisor,agent hierarchy, where monitoring is delegated. We identify the conditions under which the possibility of collusion in a principal,supervisor,agent hierarchy entails the superiority of a principal,agent organization. The results suggest that the possibility of collusion may set a limit to the size of organizations. [source]

A Double Moral Hazard Model of Organization Design

JOURNAL OF ECONOMICS & MANAGEMENT STRATEGY, Issue 1 2010
Elazar Berkovitch
We develop a theory of organization design in which the firm's structure is chosen by trading off ex post efficiency in the implementation of projects against ex ante efficiency in the selection of projects. Using our framework, we derive a novel set of empirical predictions regarding differences between firms with a functional structure and firms with a divisional structure. We examine how the overall profitability of the two structures is affected by various factors like size, complexity, and asymmetry in the importance of tasks and also explore the desirability of adopting a narrow business strategy. [source]

Cisco connects the dots: Aligning leaders with a new organizational structure

GLOBAL BUSINESS AND ORGANIZATIONAL EXCELLENCE, Issue 5 2008
Barrie Novak
Cisco's global Technical Services division used a solid change management strategy to implement a new organizational matrix. Ultimately, aligning leaders around the new vision/strategy, executive dynamics, governance, and mind-sets and behaviors essential for collaboration in the new structure came down to confronting subtler aspects of change,including trust and relationships. The transformation initially focused on vision and strategies, organization design, roles and accountabilities, governance, selection, performance linkages, metrics, and communication. When a postproject assessment surfaced some problems with organizational adoption and alignment, all the leaders convened for a summit to gain alignment, build trust, and lay the foundation for stronger working relationships. © 2008 Wiley Periodicals, Inc. [source]

The Concept of Modularity in Management Studies: A Literature Review

INTERNATIONAL JOURNAL OF MANAGEMENT REVIEWS, Issue 3 2010
Diego Campagnolo
During the last decade, modularity has attracted the attention of numerous management scholars, and both theoretical and empirical studies on this topic have flourished. However, this broad-based appeal has generated some controversies and ambiguities on how modularity should be defined, measured and used in managerially meaningful ways. This paper reviews the concept of modularity as a design principle of complex systems in management studies. Applying this criterion, 125 studies were selected and classified, grouped according to their prevalent unit of analysis: products, production systems and organizations. Although all these studies are based on Simon's seminal work on the hierarchical and nearly decomposable nature of complex systems (Simon, H.A. (1962). The architecture of complexity. Proceedings of the American Philosophical Society, 106, 467,482), this paper shows that they offer different definitions, measures and applications of the modularity concept. This review reveals the implicit structure of meanings underlying this literature and emphasizes that ambiguity in definitions and measures impedes rigorous empirical studies capable of understanding the relationship between modularity in product, in production and in organization design. Cautions and directions for future research are discussed. [source]

A Double Moral Hazard Model of Organization Design

Wealth Dynamics and the Endogenous Design of Firm Organization

THE JAPANESE ECONOMIC REVIEW, Issue 3 2003
Hiroshi Osano
The purpose of this paper is to explore a dynamic interaction between wealth distribution and firm organization design using a model of growth in altruism in which a consideration of moral hazard on the part of agents with risk-averse preferences prevents complete insurance and generates inequality. I show (i) that there exists an ergodic invariant distribution of wealth to which the stochastic process of lineage wealth converges globally, and (ii) that the firm form with direct evaluation of the agent's effort is more likely to be chosen as wealth is distributed more equally. [source]