SUMMARY OF READINGS | MANAGEMENT AND ORGANISATION 2025
Burton, R. M., & Obel, B. (2018). The science of organizational design: Fit between
structure and coordination. Journal of Organization Design, 7, 1–13.
AIM
★ To explore how organizational design can be scientifically studied and applied to
improve performance.
★ To investigate the fit between structure (task division) and coordination (task
integration).
★ To propose experimentation and observation as key methods for designing effective
organizations.
KEY CONCEPTS
Scientific Approach to Organizational Design
★ Organizations should be designed systematically using empirical research.
★ Experimentation helps explore both current practices ("what is") and potential
improvements ("what might be")
Multi-Contingency Theory
★ There is no one best way to design an organization
★ The optimal design depends on task interdependence, uncertainty, leadership, and
communication structures.
Information Processing Theory
★ Organizations function as information-processing systems.
★ Greater task uncertainty and interdependency require more coordination and
communication.
★ Coordination mechanisms include IT systems, leadership, culture, and incentives.
Experimentation in Organizational Design
★ Organizations should test structures and coordination mechanisms through controlled
experiments.
★ Methods include computer simulations, laboratory studies, field studies, and
ethnographies.
Example: The M-Form Hypothesis
★ M-Form (Multidivisional Structure):
● Divisions based on products, customers, or geography.
● Generally more efficient when tasks are highly interdependent.
★ U-Form (Unitary/Functional Structure):
● Centralized decision-making with departments based on function.
● Works only if centralized coordination is strong.
★ Findings:
, ● M-Form is usually superior to U-Form, especially when task interdependence is
high.
● Opportunism (self-interested behavior) is more damaging in the U-Form than in
the M-Form
CONCLUSION
★ Organizational design must be scientific and forward-looking.
★ Experimentation is crucial for testing different structures and coordination mechanisms.
★ New organizational forms (e.g., digital platforms, collaborative communities, agile firms)
require further research.
★ Future research should focus on predictive models to design efficient and adaptable
organizations.
Burton, R. M., & Obel, B. (2018). The science of organizational design: Fit between
structure and coordination. Journal of Organization Design, 7, 1–13.
AIM
★ To explore how organizational design can be scientifically studied and applied to
improve performance.
★ To investigate the fit between structure (task division) and coordination (task
integration).
★ To propose experimentation and observation as key methods for designing effective
organizations.
KEY CONCEPTS
Scientific Approach to Organizational Design
★ Organizations should be designed systematically using empirical research.
★ Experimentation helps explore both current practices ("what is") and potential
improvements ("what might be")
Multi-Contingency Theory
★ There is no one best way to design an organization
★ The optimal design depends on task interdependence, uncertainty, leadership, and
communication structures.
Information Processing Theory
★ Organizations function as information-processing systems.
★ Greater task uncertainty and interdependency require more coordination and
communication.
★ Coordination mechanisms include IT systems, leadership, culture, and incentives.
Experimentation in Organizational Design
★ Organizations should test structures and coordination mechanisms through controlled
experiments.
★ Methods include computer simulations, laboratory studies, field studies, and
ethnographies.
Example: The M-Form Hypothesis
★ M-Form (Multidivisional Structure):
● Divisions based on products, customers, or geography.
● Generally more efficient when tasks are highly interdependent.
★ U-Form (Unitary/Functional Structure):
● Centralized decision-making with departments based on function.
● Works only if centralized coordination is strong.
★ Findings:
, ● M-Form is usually superior to U-Form, especially when task interdependence is
high.
● Opportunism (self-interested behavior) is more damaging in the U-Form than in
the M-Form
CONCLUSION
★ Organizational design must be scientific and forward-looking.
★ Experimentation is crucial for testing different structures and coordination mechanisms.
★ New organizational forms (e.g., digital platforms, collaborative communities, agile firms)
require further research.
★ Future research should focus on predictive models to design efficient and adaptable
organizations.
