BASIC MODELS OF

ORGANIZATION
DESIGN

Organization Design may be defined as the

total pattern of structural elements and
patterns used to manage the overall
organization
Organizational Design should be seen as a
tool
for
the
implementation
of
organizational
strategies
and
the
attainment of organizational goals.

Models of Organizational Design:

The Bureaucratic Model
The Behavioral Model

The Bureaucratic Model

Given by Max Weber, a German sociologist

A bureaucracy is defined as an organization

founded on a legitimate and formal system
of authority.

Weber considered bureaucratic organization

as being logical, rational and highly
efficient.

Ideal bureaucracy has following characteristics:

Each organization
should create an absolute and clear division of labor
and staff each job with an expert in that particular staff.
Should establish a hierarchy of position
Should establish a concise and consistent set of rules
and regulations
Should establish specific personnel policies and
practices
Managers should conduct business in an impersonal
manner, maintaining an appropriate social distance
from their sub ordinates

Strengths of Bureaucracy

First model of OD, still serves as basic

foundation
for
the
understanding
and
application of new OD approaches

Despite the changes in technology and workers

attitude,
operational
efficiency
and
effectiveness can still be improved by the
selective application of such bureaucratic
principals.
Example: McDonalds

The Behavioral Model

Reflects the social and psychological

implications of organizational life

Following are the two behavioral models of

OD:
Socio Technical systems theory
Likerts Systems 4 organization

Socio Technical systems theory

Establishes two premises for OD:
a social system that provides the
framework for all the human interactions
that sustain both the formal and informal
organizations
a technical system that provides the
framework for the tasks that produce the
organizations goods and services

Likerts Systems 4 organization

Rensis Likerts research deals with the following
eight characteristics of organizations:
1.
2.
3.
4.
5.
6.
7.
8.

The
The
The
The
The
The
The
The

Leadership Process
Motivation Process
communication Process
Interaction Process
Decision Process
Goal Setting Process
Control Process
Performance Goals

Strengths:
Emphasis on behavioral processes
organization
No best way to design the organizations

of

the

Situational issues in Organization Design

Technology
Environment
Size

Trends in Organization Design

Downsizing
De-jobbing
Borderless Structures
Information Processing imperative

Organizational issues in India

Tall Hierarchy
Paternalistic relationship b/w boss/
subordinate
High degree of formalization with endless
paperwork
Divisional structure with little delegation
Stuffed Organization structure