Article Summary
In the book, ‘Levers of organization design’ Simons (2005, pp. 1-15) explores the tensions of organization design (strategy and structure, accountability and adaptability, ladders and rings, self-interest and mission success), which are driving the proper design and functioning of various organizations.
Here, the author notes that various forces, including new technologies, globalization, competition, and the enhanced capabilities of workers are threatening the stability and growth of different organizations in the twenty-first century as opposed to earlier years.
Unfortunately, Simons (2005, p. 1) notes that despite the significant changes in the current market, managers are still holding the critical role of decision-making, which has not changed as much over the years. In conclusion, the author notes that there is the need to balance the tensions of organization design in order for managers to align their organizations relative to the current changes in the market (Simons, 2005, pp. 1-15).
Article Analysis
Organizational design can be defined as a system of accountability that governs the delegation of duties according to positions as well as legitimizing the rights of workers who are charged with the responsibility of setting goals, instructing, receiving information, or influencing others (Simons, 2005, p. 17). This also defines the structure that has been used by various organizations over the centuries.
However, starting the twenty-first century going forward, it is obvious that significant changes in the operating environment of organizations is changing or expected to change. As a result, considering that the effects of organization design are long-lasting, the importance of organization design is extending far beyond managers and CEOs.
This implies that for anyone who is responsible for initiating the achievement of goals through giving instructions or assigning resources to other people, it is important to understand the implications of one’s choices, and this includes organization design.
Accordingly, the future of organization design is now pegged on how well people understand the unique challenges and tensions facing different design choices. This will also include understanding the dynamics of the four tensions of organization design. For instance, the tension between strategy and structure will drive both organization design and organizational crises.
It is obvious that markets are changing very fast with the focus shifting towards customers. Consequently, new technologies coupled with decreasing prices are limiting the product life-cycles while increasing competition. Therefore, a good organization design must reflect the changes inherent in the market, which means that the structure should follow the strategy.
On the other hand, the tension between accountability and adaptability entails the need for managers to shift their roles from monitoring compliance toward managing accountability for results. This approach will ensure that workers have the role of setting result-oriented goals (Simons, 2005, pp. 1-15).
Further, increased accountability will increase tension in workers considering that they have to experiment and adapt to the new working environments. Here, managers have the role of encouraging their workers to look for new ideas and test them by providing resources for innovation.
Most importantly, as opposed to the pyramid design of monitoring accountability, the tension between ladders and rings will ensure that organizational design reflects the ability to influence decisions both vertically (ladders) and horizontally (rings).
Finally, the tension between self-interest and mission success will seek to bring together different personalities sharing different interests in order to get them working toward a common goal, mission success.
This will also entail addressing the inherent assumptions about human behavior (Simons, 2005, pp. 1-15). Ultimately, an organization that will achieve to balance the four tensions of organization design stands a better chance of claiming a larger market share in the twenty-first century going forward.
Reference
Simons, R. (2005). Levers of organization design: How managers use accountability systems for greater performance and commitment. USA: Harvard Business School Press.