ORGANIZATIONAL DESIGN
Instructional goals
In today’s volatile world, organizational design is an everyday, ongoing activity and challenge for every executive, whether managing a global enterprise or a small work team, both in the private and public sector. Globalization, worldwide competition, deregulation, digital transformation and ever-new technologies drive the ongoing reassessment of the organization. New organizational forms challenge old ways of organizing for efficiency and effectiveness. Yet, organization still require a formal design, keeping in mind its fundamental ingredients: goals, tasks, decision-making, communication, knowledge and incentives.
Intended learning outcomes
Knowledge and understanding:
The course will offer key theoretical tools to analyze and design the organization and its demands for change in today’s volatile world. Students will acquire knowledge of the fundamental aspects of organization design, which span from the formal structure, goals and strategies, to managing people, leadership, information and knowledge, along with the up-to-date approaches to study organizations. In acquiring the theoretical bases of the organization design, students will be challenged to integrate multiple sources of information (such as: models, research papers, business cases, etc.), in order to build up the ability to critically reason on organizational issues, as well as, to actively research creative solutions.
Applying knowledge and understanding:
The students will be able to apply the aforementioned sets of knowledge and tools to:
• Assess the organizational architecture.
• Reflect on issues related to the many aspects of organization design.
• Solve organizational problems that can be adopted in different strategic and environmental contexts.
In order to build up such skill set, practice sessions will be devoted to the analyses of business cases, relevant research papers, in-class exercises and group discussions.
Making judgements:
We expect students to be able to analyze organizational architecture, in its many fundamental aspects, to demonstrate an in-depth critical understanding of the scope and challenges of organization design.
Students are furthermore expected to be able to discuss and evaluate key issues related to organizational design and organization studies.
Throughout the whole course, students will be invited to adopt a critical approach to the topics, to ask crucial questions and to find new and creative solutions.
Communications Skills:
This course will give the students the possibility to acquire major terms and concepts in order to communicate their ideas, critiques and proposals in the most effective and appropriate way, as well as the ability to interact in operational contexts through specialist knowledge, by integrating diverse sources of information.
Learning skills:
This course will contribute to empower learners giving them the tools to determine the best possible solutions to organizational problems, to critically evaluate the theoretical models, and acquire independent and critical thinking. Additionally, the course is aimed at developing the ability to search and integrate multiple information, to establish the critical links between research and practice, as well as between theory and its applications.
Course Contents
In this course, we will deal with organizational design as a managerial approach to demands for change in the organization. The theoretical basis is the multi-contingency and information processing approach and its application in defining the contingencies of organization design. In applying this model, we will take into consideration multiple contingencies and their strategic and organizational fits: a fit is a match between the organization and its environment, strategy, technology, management style or knowledge, and information structure. This perspective provides management with an opportunity to assess the organization design and change it regularly.
In analyzing all these contingencies, we will focus on the processes and mechanisms, both at the individual and organizational levels. Finally, we will focus on the new perspectives to study organizations – such as organizational neuroscience - by analyzing its benefits and downfalls in organizations studies and by adopting a critical perspective.
Reference Books
Attending students:
• Organizational Design: A Step-by-Step Approach (4th Edition). 2020. Richard M. Burton, Borge Obel, Dorthe Dojbak Hakonsson.
• Mandatory papers, readings, and cases used during the course (listed on a week-by-week bases).
Non attending students:
• Organizational Design: A Step-by-Step Approach (4th Edition). 2020. Richard M. Burton, Borge Obel, Dorthe Dojbak Hakonsson.
• Mandatory papers, readings, and case studies used during the course, listed on a week-by-week basis.
• Supplementary reading/cases, listed on a week-by-week basis (i.e., supplementary readings are mandatory for non-attending students)
Teaching Methods
During the course, the following teaching methods will be applied:
• lectures
• individual assignments
• working groups and case studies
• keynote speakers’ presentations
• individual or group assignments
Practice sessions integrate the theoretical lectures with the analysis of business cases and discussions, exercises and reflection on relevant papers.
Students will be required to join practical training sessions and analyze or discuss, individually or within small groups, case studies/readings focused on the resolution of organizational problems that can be adopted in different strategic and environmental contexts.
These sessions are useful to evaluate student's ability to put into practice the methods of organizational design and analysis acquired during the lectures.
Assessment Method
Attending Students: The final grade will be based on a final written exam + in-class assignments/projects/exercises + bonus points based on in-class pop-up quizzes. In order to be considered attending students, it is necessary to attend no less that 70% of the course hours.
Written examination: 30% of the grade.
Exercises/assignments: 20% + 20% + 30%
Bonuses: Max 2 bonus points can be given for in-class pop-up quizzes. Bonus points are valid only for the first exam session (i.e., appello unico).
In order to be considered as attending students you have to attend at least 70% of the course. Presence will be registered using the LUISS app at the beginning of each online and on campus session.
- Instructions for the final written exam (attending): A mix of multiple-choice/true-or-false questions and Open questions. True/false questions also require a short open response indicating the main concept or a practical example or explanation of the selected choice. The points for each question are explicitly reported. Nobody, including the instructor, can answer any question during the exam session.
Or
Analysis of a short fictional case/relevant paper and answer to 2 open questions. The points for each question are explicitly reported. Nobody, including the instructor, can answer any question during the exam session.
- Instruction for in-class exercises/assignment (attending):
Analysis of a business case or relevant paper and answer to an open question. The answers will be evaluated based on the reasoning and the ability analyze business cases, and the ability to find solutions to specific organizational problems.
and/or
Project work assignment in small-goups for the definition of a research project or to solve a particular business challenge.
- Instructions for bonus points (attending): Bonus points (max 2) can be accumulated by answering to multiple choice quizzes during the course. The dates of the quizzes will not be disclosed in advance (i.e., pop quiz), as they are aimed at evaluating attendance and participation. Quizzes are based on a one-shot logic, hence if you miss one or more quizzes (e.g., because you missed the class) it will not be possible to take the quiz in a different time or day (in other words, if you miss the class you also miss the quiz).
Non-attending students: The final grade will be based on a final written exam (100%)
Instructions for the final written exam (non-attending). The exam will include all the following:
• Analysis of a short fictional case to answer to 2 open questions.
• Multiple choice questions
• True-or-false questions, requiring a short open response indicating the main concept or a practical example or explanation of the selected choice (max 3 lines).
• Open questions requiring the explanation of a concept, theory, definition, or example (max 10 lines).
Thesis assignment criteria
Master thesis assignment is based on a project proposal elaborated and presented by the student.
The project (2/3 pages) must include:
• Table of contents
• Abstract
• Main references
•In case of experimental thesis: research questions and experimental design proposal. For experimental thesis, only quantitative research design will be considered. For experimental thesis it is advised to present the project proposal a minimum of 6 months before the planned graduation session.
Week 1 Contenuto sessioni on line e on campus
On-campus session:
• Introduction and general overview of the course.
• Designing an organization: the multi-contingency approach to organizational design – diamond model.
• Goal & Scope of the organization
• Strategy
• Analysis of the environment
Online session:
In class exercise – via business case analyses and group discussion - on the analyses of the goal, strategy, and environment of different organizations. Exploration-exploitation dilemma.
Mandatory reading:
• Laureiro-Martinez, D., Brusoni, S., Canessa, N., & Zollo, M. (2015). Understanding the Exploration-Exploitation Dilemma: an fMRI Study of Attention Control and Decision-Making Performance. Strategic Management Journal, 36(2), 319–338. https://doi.org/10.1002/smj.2221
Week 2 Contenuto sessioni on line e on campus
On-campus session:
The structure of the organization, organigram and overview of the main organizational forms:
• Simple organizations
• Functional organization
• Divisional form
• Matrix form
• Pros & cons
Online session:
Face-to-face group discussions, exercises, and practical trainings on the concept of fit in the organizational design in domestic and MNC.
Mandatory reading:
• Donaldson, L., & Joffe, G. (2014). Fit - The Key to Organizational Design. Journal of Organization Design, 3(3), 38. https://doi.org/10.7146/jod.18424
Supplementary readings/cases:
• Burton, R. M., Obel, B., & Håkonsson, D. D. (2015). How to get the Matrix Organization to Work. Journal of Organization Design, 4(3), 37. https://doi.org/10.7146/jod.22549
Week 3 Contenuto sessioni on line e on campus
On-campus session:
New Forms of Organization (1):
• Organizing and self-organizing
• “Spaghetti Organization”
• Agile organizing
Supplementary reading:
•Foss, N. J. (2003). Selective intervention and internal hybrids: Interpreting and learning from the rise and decline of the Oticon spaghetti organization. Organization Science, 14(3), 331–350. https://doi.org/10.1287/orsc.14.3.331.15166
On-campus session:
Face-to-face group discussions, exercises, and practical trainings based on the mandatory reading/case:
Mandatory reading:
OTICON: https://corporate-rebels.com/lars-kolind/
Supplementary reading:
• DeFillippi, R., & Lehrer, M. (2011). Temporary modes of project-based organization within evolving organizational forms: insights from Oticon's experiment with the spaghetti organization. In Project-Based Organizing and Strategic Management (pp. 61-82). Emerald Group Publishing Limited. https://doi.org/10.1108/S0742-3322(2011)0000028007
Week 4 Contenuto sessioni on line e on campus
• On-campus session:
New Forms of Organization (2): Emergent models:
• Helix
• Teams of Teams
• Boss-less organizing
• Hierarchy-less organizing
• Holacracy
Supplementary reading:
• Bernstein, E., Bunch, J., Canner, N., & Lee, M. (2016). Beyond the Holacracy Hype. Harvard Business Review, July-Agust. To buy: https://doi.org/10.1002/qua.560220720
• De Smet, A., Kleinman, S., & Weerda, K. (2019). The helix organization. McKinsey Quarterly, October, 1–10. https://www.mckinsey.com/business-functions/organization/our-insights/the-helix-organization
Online session:
Face-to-face group discussions, exercises, and practical trainings based on the mandatory readings/cases.
Mandatory reading:
• Puranam, P., & Håkonsson, D. D. (2015). Valve’s Way. Journal of Organization Design, 4(2), 2. https://doi.org/10.7146/jod.20152
Supplementary Readings:
• Sanner B. & Burdenson S. (2018). The Truth about Hierarchy. MIT Sloan Management Review. https://sloanreview.mit.edu/article/the-truth-about-hierarchy/
• Sisney, L. (2014). An Inside Look at Holacracy https://organizationalphysics.com/2014/03/09/an-inside-look-at-holacracy/
Week 5 Contenuto sessioni on line e on campus
On-campus session:
New Forms of Organization (3):
• Crowd-open organizing
• Crowd-based organizing
• Pros and cons of crowd-based organizing
Mandatory reading:
• Giustiniano, L., Griffith, T. L., & Majchrzak, A. (2019). Crowd-open and crowd-based collaborations: Facilitating the emergence of organization design. In Research in the Sociology of Organizations (Vol. 64, pp. 271–292). Emerald Group Publishing Ltd. https://doi.org/10.1108/S0733-558X20190000064017
On-line session:
Face-to-face group discussions, exercises, and practical trainings based on the mandatory case.
Mandatory reading:
• HTT – Applegate L. M., Griffith T. L., Majchrzak A. (2017). Hyperloop Transportation Technologies: Building Breakthrough Innovations in Crowd-Powered Ecosystems. Harvard Business School, N9-817-134. Case to buy: https://store.hbr.org/product/hyperloop-transportation-technologies-building-breakthrough-innovations-in-crowd-powered-ecosystems/817134?sku=817134-PDF-ENG
Supplementary readings:
• Majchrzak, A., Griffith, T. L., Reetz, D. K., & Alexy, O. (2018). Catalyst organizations as a new organization design for innovation: The case of hyperloop transportation technologies. Academy of Management Discoveries, 4(4), 472-496. https://doi.org/10.5465/amd.2017.0041
Week 6 Contenuto sessioni on line e on campus
On-campus session:
New Forms of Organization (4):
• Ecosystems
Mandatory reading:
• Jacobides, M. G., Cennamo, C., & Gawer, A. (2018). Towards a theory of ecosystems. Strategic Management Journal, 39(8), 2255–2276. https://doi.org/10.1002/smj.2904
On-line session:
Face-to-face group discussions, exercises, and practical trainings based on the mandatory case:
Mandatory reading:
• Kramer, M. R., & Pfitzer, M. W. (2016). The ecosystem of shared value. Harvard Business Review, 94(10), 80-89. To buy: https://hbr.org/2016/10/the-ecosystem-of-shared-value
Supplementary readings:
• Birkinshaw, J. (2019). Ecosystem businesses are changing the rules of strategy. Harvard Business Review. To buy: https://hbr.org/2019/08/ecosystem-businesses-are-changing-the-rules-of-strategy
• Jacobides, M. G. (2019). The Delicate Balance of Making an Ecosystem Strategy Work. Harvard Business Review. To buy: https://hbr.org/2019/11/the-delicate-balance-of-making-an-ecosystem-strategy-work
Week 7 Contenuto sessioni on line e on campus
Content
On-campus session:
New Forms of Organization (5):
• Platforms
• Network Effects
Mandatory reading:
• Van Alstyne, M. W., Parker, G. G., & Choudary, S. P. (2016). Pipelines, Platforms, and the New Rules of Strategy: Scale now trumps differentiation. Harvard Business Review, 94(April), 54–62.
https://doi.org/https://hbr.org/2016/04/pipelines-platforms-and-the-new-rules-of-strategy
• Principles for Designing a Successful Platform, in Parker, G., Van Alstyne, M. and Choundary, S. (2016) Platform Revolution. London: Norton, chapter 3, pp. 35-59. To buy: https://wwnorton.com/books/Platform-Revolution/about-the-book/product-details
Online session:
Face-to-face group discussions, exercises, and practical trainings based on the mandatory reading:
Mandatory reading:
• Daood, A & Calluso C. (2023) What about a non-profit platform? Bringing the right sides together against food waste and hunger. Luiss Teaching Cases.
Supplementary Readings:
• Feng, Z., & Marco, I. (2019). Why Some Platforms Thrive and Others Don't. Harvard Business Review. To buy: https://hbr.org/2019/01/why-some-platforms-thrive-and-others-dont
Week 8 Contenuto sessioni on line e on campus
On-campus session:
Managing Task & People:
• Assess the task structure
• Assessing people space
Online session:
Face-to-face group discussions, exercises, and practical trainings based on the mandatory readings.
Mandatory reading:
• Calluso C., Marino A., Devetag M.G. & Prencipe A., (under review). The Key Role of Visual Coordination in the Formation of Collective Routinized Actions.
Week 9 Contenuto sessioni on line e on campus
On-campus session:
Leadership & Organizational Climate:
• Leadership styles
• Organizational Climate
• Assessing the organizational climate
On-line session:
Face-to-face group discussions, exercises, and practical trainings leadership & organizational climate.
Mandatory reading:
• Babiak, P., Neumann, C. S., & Hare, R. D. (2010). Corporate Psychopathy: Talking the Walk. Behavioral Sciences & the Law, 28(April),174–193. https://doi.org/10.1002/bsl.925
Supplementary readings:
• Mathieu, C., Neumann, C. S., Hare, R. D., & Babiak, P. (2014). A dark side of leadership: Corporate psychopathy and its influence on employee well-being and job satisfaction. Personality and Individual Differences. https://doi.org/10.1016/j.paid.2013.11.010
Week 10 Contenuto sessioni on line e on campus
On-campus session:
Coordination, Control, information/knowledge systems & Incentives:
• Designing coordination & control systems
• Tacit vs. explicit knowledge
• Links to decision-making in the organization
• Incentive structures
• Risk proneness
On-line session:
Face-to-face group discussions, exercises, and practical trainings.
Mandatory reading:
• Elizabeth F. Cabrera & Angel Cabrera (2005) Fostering knowledge sharing through people management practices, The International Journal of Human Resource Management. https://doi.org/10.1080/09585190500083020
Week 11 Contenuto sessioni on line e on campus
On-campus session:
Organizational Neuroscience.
Mandatory reading:
• Volk, Becker (2015). 1. An Overview of Organizational Neuroscience. In Organizational Neuroscience (Vol. 7, pp. 189–211). https://doi.org/10.1108/S1479-357120150000007001
On-line session:
Face-to-face group discussions, exercises, and practical trainings based on the mandatory reading:
Mandatory reading:
• John R. Wells, Benjamin Weinstock (2021) - pymetrics: Foundation - Harvard Business Review. To buy: https://hbsp.harvard.edu/product/720374-PDF-ENG
Supplementary readings:
• Healey, M. P., & Hodgkinson, G. P. (2015). 2. Toward a theoretical framework for organizational neuroscience. In Organizational Neuroscience (Vol. 7, pp. 51–81). https://doi.org/10.1108/S1479-357120150000007002
Week 12 Contenuto sessioni on line e on campus
Theory session:
Final remarks and sum-up of the course
Practice session:
Preparation for the exam, simulation, and exercises.