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A well-designed organization is an effective organization. Decisions about organization design determine the shape and form of the organization – not only the reporting structure and authority relations, but also the number and size of sub-units and the interfaces between the sub-units. Indirectly, such decisions affect individual productivity as well as the organization’s ability to attain strategic goals. Organization Design equips the reader with advanced tools and frameworks, based on both research and practical experience, for understanding and re-designing organisations. Particular emphasis is placed on how one can improve effectiveness by simplifying complex roles, processes, and structures. This updated second edition includes a new chapter about traditional organizational forms, and is complemented by a companion website. Students will find thorough conceptual explanations combined with case studies from different industries. This textbook will be essential reading for students, scholars, and practitioners.
This book explores the process of organization and systems design. Researchers will glean radically different epistemological and ontological perspectives; designers will acquire entirely different intellectual tools, principles and mechanisms of design and managers should learn to think of organization and systems differently.
Organization Design looks at how you need to change the ways your organization does things in order to increase productivity, performance, and profit. Providing the knowledge and method to handle the kind of recurring organisational change that all businesses face, those which do not involve transforming the entire enterprise but which necessitate significant change at the business unit, divisional, functional, facility or local levels. The problem lies in knowing what needs to change and how to change it. Taking the organisation as a designed system, it describes four major elements of organizations: the work - the basic tasks to be done by the organisation and its parts, the people - characteristics of individuals in the organization, formal organization - structures eg the organisation hierarchy, processes, and methods that are formally created to get individuals to perform tasks, informal organization - emerging arrangements including variations to the norm, processes, and relationships, commonly described as the culture or 'the way we do things round here'. The way these four elements relate, combine and interact affects productivity, performance and profit. Most books on this subject target a wide management audience rather than HR, this is specifically written for HR practitioners and line managers working together to achieve the goal. It clarifies why and how organisations need to be in a state of readiness to design or redesign and emphasises that people as well as business processes must be part of design considerations.
While technology and geopolitical forces change the face of business today, the patterns and challenges of organizing humans to work together across organization, culture, language and time zone boundaries remain. To face these challenges, all organizations need to be agile, networked and scalable. Networked, Scaled, and Agile reveals how to shape organizations that will enable people to make faster and better decisions in a more complex world. By outlining the tension between the need for agility/differentiation and scale/integration, the book offers a new way to think about this debate using the models of the Tower (vertical integration) and the Square (horizontal integration). It addresses the role of the leadership team and how the organization design process can build C-suite leaders and successors. Each chapter concludes with a series of reflection questions for leaders as well as a summary of key concepts and tips. Including case studies from global organizations, Networked, Scaled, and Agile reveals how organization design can address three of the biggest business challenges organizations face today: how to build a new capability across the entire enterprise; how to make the entire organization more customer-centric; and how to allow for faster innovation.
​This book is dedicated to the memory of Professor Alessandro (Sandro) D'Atri, who passed away in April 2011. Professor D'Atri started his career as a brilliant scholar interested in theoretical computer science, databases and, more generally information processing systems. He journeyed far in various applications, such as human-computer interaction, human factors, ultimately arriving at business information systems and business organisation after more than 20 years of researc hbased on "problem solving". Professor D'Atri pursued the development of an interdisciplinary culture in which social sciences, systems design and human sciences are mutually integrated. Rather than retrospection, this book is aimed to advance in these directions and to stimulate a debate about the potential of design research in the field of information systems and organisation studies with an interdisciplinary approach. Each chapter has been selected by the Editorial Board following a double blind peer review process. The general criteria of privileging the variety of topics and the design science orientation and/or empirical works in which a design research approach is adopted to solve various field problems in the management area. In addition several chapters contribute to the meta-discourse on design science research.
This upper-level textbook provides a practical guide to the field of organization design, grounded in academic literature. It is set apart from other books on the topic by its commitment to be relevant to Master’s students, as well as practitioners looking for evidence-based guidance. The book provides a solid theoretical background for students, defining what organization design is, exploring the history of the field, and describing established frameworks and theories. It then investigates why organizations may seek to embark on a re-design, and what a well-designed organization looks like, referencing case studies and the author’s own research. From there, it takes students through how organization design occurs, examining various models for intervention, the core steps in designing an organization, and what challenges a practitioner may face, all illustrated by stories from the field. This book includes a wide range of didactic elements for students, including learning objectives, case study examples, review questions, and further reading. It examines the impact of new ways of organizing, and draws on the author’s years of experience as a consultant to ensure that academic theory is seamlessly melded with practical application.
Praise for Leading Organization Design "Sheds light on the challenges of organization design in a complex enterprise and more importantly provides an insightful and practical roadmap for business decisions." Randy MacDonald, SVP, human resources, IBM "Designing organizations for performance can be a daunting task. Kesler and Kates have done an admirable job distilling the inherent complexity of the design process into manageable parts that can yield tangible results. Leading Organization Design provides an essential hands-on roadmap for any business leader who wants to master this topic." Robert Simons, Charles M. Williams Professor of Business Administration, Harvard Business School "Kesler and Kates have encapsulated their wealth of knowledge and practical experience into an updated model on organizational design that will become a new primer on the subject." Neville Isdell, retired chairman and CEO, The Coca-Cola Company "In today's world of global business, organizational design is a critical piece of long-term success. Kesler and Kates have captured multiple approaches to optimize global opportunities, while highlighting some of the keys to managing through organizational transition. A great read for today's global business leaders." Charles Denson, president, Nike Brand "Leading Organization Design has some unique features that make it valuable. It is one of the few and certainly only recent books to take us through an explicit process to design modern organizations. This is accomplished with the five-milestone process. The process is not a simple cookbook. Indeed, the authors have achieved a balance between process and content. In so doing, Kesler and Kates show us what to do as well as how to do it." Jay Galbraith, from the Foreword
'Goold and Campbell, leading thinkers on corporate-level strategy, have turned their attention to corporate-level organization design. They bring a rigor to this topic that will help managers wrestling with multiple reporting dimensions, decentralization and cross-unit co-ordination.' Professor Gary Hamel, London Business School. Author of Competing for the Future and Leading the Revolution. 'Campbell and Goold are renowned for discovering entirely new and useful dimensions to seemingly familiar business issues. This book is another shining example. It allows executives to replace politics and personality as the rationales for an organizational design with clear, effective logic and experience.' Thomas H. Davenport, Director, Accenture Institute for Strategic Change. Author of Process Innovation and Working Knowledge. 'A "must read" for managers and consultants. Redesigning the organization is the most powerful and fastest means for aligning decisions and behavior with strategic objectives. Goold and Campbell provide the best and most comprehensive framework for developing and testing the validity of an organizational structure I have seen in recent years. Based on years of research and experience they offer clear principles and a process to guide managers in the many design decisions and trade-offs involved in developing a more effective organization.' Professor Michael Beer, Harvard Business School. Author of The Critical Path to Corporate Renewal. 'Books on organization design tend to fall into one of two categories: those that provide interesting concepts but not help on how to implement them and those that are full of check lists on implementation, based on sterile and over-simplified ideas. Michael Goold and Andrew Campbell have written perhaps the finest example of an exception I have ever seen - a very practical book, with detailed guidelines on implementation, yet based on a rich and sophisticated understanding of the real challenges of organization design. It will be of immense use to all careful readers.' Professor Sumantra Ghoshal, London Business School. Author of The Individualized Corporation and Managing Across Borders. 'As companies search for all sources of competitive advantage, many are discovering that the ability to organize and execute complex strategies is an important one. Campbell and Goold have again provided us with a good process through which leaders can give organizing its deserved focus.' Professor Jay Galbraith, author of Designing the Global Corporation. 'Campbell and Goold bring much needed clarity and precision to the language of organizational design and show how this can help managers avoid the misunderstandings and differing interpretations that frequently undermine new organization structures.' Paul Coombes, Director, Organization Practice Area, McKinsey & Company. 'Organization change is close to the top of many companies' agendas. Goold and Campbell's book equips you with ideas and frameworks to take on the journey. The real-world examples help make it both pragmatic and readable.' Steve Russell, Chief Executive, The Boots Company plc. 'An impressive work. The taxonomy of organizational units and organigram symbols will be especially useful to managers working on structures.' Philip Sadler, Patron, The Centre for Tomorrow's Company. Author of The Seamless Organization. 'Incredibly relevant in helping to pull together a complicated structure based around the dimensions of channels, products, customers and geography - immensely clear and valuable.' David Roberts, Chief Executive, Personal Financial Services, Barclays plc. 'A welcome breakthrough in designing more effective corporate organization structures. The nine design tests of Goold and Campbell are a valuable addition to an otherwise sparse toolkit.' Jim Haymaker, Vice President, Strategy & Business Development, Cargill Inc. ...
The design of an organization--the accountability system that defines roles, rights, and responsibilities throughout the firm--has a direct impact on the performance of every employee. Yet, few leaders devote focused attention to how this design is chosen, implemented, and adjusted over time. Robert Simons argues that by viewing design as a powerful and proactive management lever--rather than an inevitable outcome of corporate evolution--leaders can maximize productivity across every level of the organization. Levers of Organization Design presents a new design theory based on four key yet often underrated categories: customer definition, critical performance variables, creative tension, and commitment to mission. Building from these core areas, Simons lays out a step-by-step process leaders can follow to create structures and accountability systems that positively influence how people do their work, where they focus their attention, and how their activities can be aligned to contribute to overall strategic goals. He also introduces four levers of organizational design--unit configuration, diagnostic control systems, interactive networks, and responsibility to others--that leaders can manipulate to improve overall organizational efficiency and effectiveness vastly. For anyone accountable for measuring and managing performance, this book shows how good design can become an organization's roadmap to success. Robert Simons is the Charles M. Williams Professor of Business Administration in the accounting & control area at Harvard Business School.
As the purse strings tighten company costs need to be cut without this affecting performance or sales. A common solution to this problem is to restructure the organization of the company i.e. adjust the lines and boxes on the organization chart with the aim of setting it up for high performance. This inevitably fails because an organization is a system; change one aspect and other facets will also change. Organization Design: Engaging with change looks at how to (re) design the organizational system in order to increase productivity, performance and value; providing the knowledge and methodology to design an agile organization capable of handling the kind of continuous organizational change that all businesses face. The book clarifies why and how organizations need to be in a state of readiness to design or redesign and emphasizes that people as well as business processes must be part of design considerations. Responding to developments across the world since the first edition, this book covers, among other topics: Technology changes that have impacted upon organizations Increased demands for ‘sustainability’ and corporate social responsibility The pressure on organizations to be smarter, more efficient and more effective Whilst the material on this subject targets a wide management audience, this book is specifically written for consultants, OD/HR practitioners and line managers working together to achieve the goal of organizational redesign for changing circumstances. Aided by a range of pedagogical features, this book is a must-read for students or practitioners involved in the field of organizational design, development and change.