Organizational Design Model Organizational Design Article Analysis: Essay

Organizational design model

Organizational design article analysis: The future of organizational design

Theories of organizational design predate the Internet revolution. However, the article "The future of organizational design: A forecasting study" suggests that theories of organizational design have undergone major changes in the Internet age. Organizations have shifted away from functional and processed-based models of firm design to other, new design models (Yildiz 2012). The main reason for this is technology. "Depending on its own value chain, an organization can hand over operations that do not require direct control and that do not create a different value; to their business associates. Nowadays, information networks allowing fast and cheap communication with business associates can be created over the internet" (Yildiz 2012). Organizations can become highly specialized and delegate more and more of their functions to outside entities. In contrast to previous eras, they do not have to have face-to-face contacts with these individuals or brick-and-mortar connections. This gives them greater flexibility in how they delegate authority.

For example, in the new, 'hollow' design model, the organization designates its main, core competencies and tries to excel in those, while delegating the rest elsewhere to outside organizations save both time and labor. In the increasingly competitive economy, where consumers have a great deal of selection and there is often little differentiation between organizations, such a model 'makes sense.' In another organizational design model, known as "flat structured lattice organizations," there is almost no corporate hierarchy and almost everyone operates as an equal (Yildiz 2012). Particularly with smaller-to-mid-sized organizations, having a relatively nonhierarchical structure with focused business interests allows the organization to save on…