Organizational design
Designs how an organization works: its structure, processes, incentives and people, so that they serve its strategy.
What it deals with
A good strategy fails if the structure, processes or incentives push in another direction.
Principles
Strategy
What the organization wants to achieve.
Structure and processes
Who decides and how work flows.
Incentives and people
What is rewarded and which skills are needed.
Applications in design
Use it like this
Before changing the org chart, review processes and incentives.
Avoid
Changing the structure and expecting the way people work to change.
Don’t fall for it
Design with the people who work in the organization, not just for them.
Connections
Authors and works
- 1995
Jay R. Galbraith
Proposed the star model: strategy, structure, processes, incentives and people have to fit together.
Sources
Original sources
- Galbraith, J. R. (1995). Designing organizations: An executive briefing on strategy, structure, and process. Jossey-Bass.
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