Organization Design for the 21st Century

This book explains the development of new organization forms for firms, as these result from innovations in business models, the declining costs of information and communication and the changing nature of the firm. The book relates these new forms to existing publications on organization design, and discusses the limitation of traditional approaches. This book takes a multidisciplinary approach by including the changes in the institutional environment in organization design, the design of the resource allocation process, the design of the budget system and the design of the objective function into the equation of organization design. Also the book takes a new perspective to organization design by using the concepts of human capital, information capital and organization capital. The book describes what psychological factor play a role in organization design, as well the changing nature of organization culture. The book explains the different types of information to be included in organization design and by doing so offers solutions for issues like empowerment, across unit cooperation, exploitation of synergies, creating an environment for creative knowledge workers and how to organize effective process management. The book demonstrates why Chandler's rule structure follows strategy is being replaced by processes follow the (customer value) proposition. The book concludes with an organization design reconciliating exploitation and exploration.