Wednesday, May 16, 2007

The Role of Organizational Design in 21st Century Organizations

How we understand organizational design is in the midst of radical change. Just as the industrial revolution in England and the Unites States changed predominantly agricultural societies to urban societies forever, so is the availability of knowledge markets changing the industrial landscape. Defined, design blends plan with a proposal for a look or function. Design is also the art or action resulting in conception of a plan or idea. Design, in light of this definition, presumes structure in a physical sense. However, design is not a word that means specifically structure. One origin of design comes from Latin that means designate. A designation includes such meanings as an appointment to a position, an assignment of status, or an ascribed meaning. If we ascribe meaning using ascribe as a transitive verb, we enter the realm of cause and effect.

History supports the lure of industry pulling large population groups away from farming. Industry made the growth of cities possible. Industry provided job security over the long term that farming did not. Industry relied on physical structure, command and control over generally uneducated workers. Industry supported the wealth of nations. These multiple causes had their multiple effects on what we know as organizational design. Industrial age organizational design employed strict hierarchy, workers delivered only product and the boss ruled supreme.

To search for the spark that caused the radical shift away from industry, one may find it with a small group of professors and students at Stanford University who sent the first binary message from one computer to another over a wire. Now we know that they created not only a spark but a firestorm that has not subsided and continues to burn on a global level. As a consequence, not only do we now have virtually instantaneous connections to people everywhere, but work no longer dependents on structural design. Therefore, this paper looks at organizational design in 21st century business operations with a focus on design function and its role in the changing structure.

This discussion, while acknowledging that physical infrastructure is important, suggests that traditional brick and mortar structure does not necessarily provide the best environment for accomplishing work. In addition, this discussion accepts an operational design including leadership and management hierarchies but in roles that do not stifle innovation or idea generation.
How we understand organizational design is in the midst of radical change. Just as the industrial revolution in England and the Unites States changed predominantly agricultural societies to urban societies forever, so is the availability of knowledge markets changing the industrial landscape. Defined, design blends plan with a proposal for a look or function. Design is also the art or action resulting in conception of a plan or idea. Design, in light of this definition, presumes structure in a physical sense. However, design is not a word that means specifically structure. One origin of design comes from Latin that means designate. A designation includes such meanings as an appointment to a position, an assignment of status, or an ascribed meaning. If we ascribe meaning using ascribe as a transitive verb, we enter the realm of cause and effect.

History supports the lure of industry pulling large population groups away from farming. Industry made the growth of cities possible. Industry provided job security over the long term that farming did not. Industry relied on physical structure, command and control over generally uneducated workers. Industry supported the wealth of nations. These multiple causes had their multiple effects on what we know as organizational design. Industrial age organizational design employed strict hierarchy, workers delivered only product and the boss ruled supreme.

To search for the spark that caused the radical shift away from industry, one may find it with a small group of professors and students at Stanford University who sent the first binary message from one computer to another over a wire. Now we know that they created not only a spark but a firestorm that has not subsided and continues to burn on a global level. As a consequence, not only do we now have virtually instantaneous connections to people everywhere, but work no longer dependents on structural design. Therefore, this paper looks at organizational design in 21st century business operations with a focus on design function and its role in the changing structure.

This discussion, while acknowledging that physical infrastructure is important, suggests that traditional brick and mortar structure does not necessarily provide the best environment for accomplishing work. In addition, this discussion accepts an operational design including leadership and management hierarchies but in roles that do not stifle innovation or idea generation.