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Re-defining complex systems nicolay Worren
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Managers, consultants and academics are increasingly aware of the importance of organisation i
design in realising strategic goals and improving organisational effectiveness. Organisation design s systems
decisions directly affect how authority is defined, how resources are allocated, how business
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processes are linked together and how human capital is developed, coordinated and deployed.
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At the same time, there has never been a more challenging time to design and re-design i
organisations. An important cause is increasing complexity. Large organisations may consist o
of thousands of employees, delivering hundreds of different products in multiple markets or
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geographies. And new customer preferences lead to the development of new product variants,
nicolay Worren
necessitating changes in the supply chain. With interdependencies to manage, how can managers
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reach decisions in a timely manner to respond to external threats and opportunities?
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This book equips the reader with advanced tools and frameworks, based on research and i
practical experience, for re-designing complex organisations and addressing challenges g
faced by today’s managers. These address everything from design at sub-unit level (e.g.
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departments and teams) up to the overall organisational architecture. Features of the text
include:
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• Case studies drawn from a wide range of industries that show how the content within ye
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each chapter applies to real-life situations and problems td
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• Tools, frameworks, and design propositions that support interventions and design mfi
processes in organisations sn
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• Literature reviews and suggested questions for further research. g

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About the author l
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Nicolay Worren is a consultant who helps business leaders design more effective organisations.

He has previously worked in two large consulting firms. Nicolay holds a master’s degree from McGill
University and a doctorate from Said Business School, University of Oxford. He has published articles W
on strategy, organisation design and human resources in both academic and practitioner journals.
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www.pearson-books.com :
CVR_WORR8831_01_SE_CVR.indd 1 07/03/2012 11:27
Organisation Design

Organisation Design
Re-defining complex systems
Nicolay Worren
Pearson Education Limited
Edinburgh Gate
Harlow
Essex CM20 2JE
England
and Associated Companies throughout the world
Visit us on the World Wide Web at:
www.pearson.com/uk
First published 2012
© Pearson Education Limited 2012
The right of Nicolay Worren to be identified as author of this work has
been asserted by him in accordance with the Copyright, Designs and Patents Act 1988.
All rights reserved. No part of this publication may be reproduced, stored in a retrieval
system, or transmitted in any form or by any means, electronic, mechanical, photocopying,
recording or otherwise, without either the prior written permission of the publisher or a
licence permitting restricted copying in the United Kingdom issued by the Copyright
Licensing Agency Ltd, Saffron House, 6–10 Kirby Street, London EC1N 8TS.
Pearson Education is not responsible for the content of third-party Internet sites.
ISBN: 978-0-273-73883-1
British Library Cataloguing-in-Publication Data
A catalogue record for this book is available from the British Library
Library of Congress Cataloging-in-Publication Data
Worren, Nicolay A. M., 1966–
Organisation design : re-defining complex systems / Nicolay Worren.
p. cm.
Includes bibliographical references and index.
ISBN 978-0-273-73883-1
1. Delegation of authority. 2. Line and staff organization. 3. Hierarchies.
4. Workflow. 5. Personnel management. 6. Complex organizations. I. Title.
HD50.W67 2012
658.4'02—dc23
2011053137
10 9 8 7 6 5 4 3 2 1
16 15 14 13 12
Typeset in 9/13pt Stone Serif by 30
Printed and bound by Ashford Colour Press Ltd, Gosport
On the one hand, design creates nothing. By itself, design is an empty vessel waiting
to be filled with people, meanings, and actions . . . it is a dead form that has no life or
energy itself . . . Yet on the other hand, it creates everything since the organisational
design will have a fundamental framing effect on people’s expectations and percep-
tions, setting the context for the organising activity – the social construction of roles
and relationships – through which structure is enacted.
Bate, Khan & Pye (2000)

Brief contents
About the author xiii
Publisher’s acknowledgements xv
Preface xvii
1 Why design matters 1
2 Organisational complexity 35
3 Managing the organisation design process 67
4 Designing multidimensional organisations 110
5 Designing sub-units 146
6 Structuring vertical layers 176
7 Configuring interfaces 197
8 Rooting out complexity 229
Index 261

Contents
About the author xiii
Publisher’s acknowledgements xv
Preface xvii
1 Why design matters 1
Overview 1
Introduction 2
Foundational concepts 4
Key challenges facing the discipline 7
The value of effective designs 11
Design attitude 15
Organisational architecture 17
Axiomatic design theory 18
‘Layers’ of design parameters 24
Design-oriented research 25
Conclusion 27
Design propositions 28
Review questions 28
Research questions 29
Case study: Procter & Gamble’s Organisation 2005 initiative 31
References 32
2 Organisational complexity 35
Overview 35
Introduction 36
Simplicity versus complexity 37
How complexity affects organisational functioning 40
Rising complexity 44
Why is complexity allowed to grow? 48
Developing a new agenda for managing and re-designing
complex organisations 51
Discussion 55
Summary and conclusion 59
Design propositions 60
Review questions 60
Research questions 61
Case study: The functions and structure of a hospital 62
References 64