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Distributing Discretion and Designing Structural Mechanisms

In: Organizational Systems

Author

Listed:
  • Raul Espejo

    (Syncho Ltd.)

  • Alfonso Reyes

    (Universidad de Ibague)

Abstract

The previous chapter showed how the unfolding of complexity is a useful tool to describe and design the way an organization groups (or should structure) its primary activities. In this chapter the unfolding of complexity is used to discuss the distribution of resources and discretion from the organization’s global level to the local level of the most basic primary activities. For this purpose it uses the Recursion/Functions Table. This is a tool to discuss the centralization and decentralization of organizational resources and decision-making. Some resources may be centralized but at the same time may be functionally decentralized. Supported by multiple examples of particular transformation processes we discuss in this chapter criteria to decentralize or otherwise the organization’s resources. The Table is used to give systemic meaning to business functions; are these functions regulating the inside and now of the organization or are they providing capacity to deal with the outside and then? For a primary activity to be autonomous, and viable in its own right, it needs resources and discretion to make decisions and develop its own identity. In the end this chapter offers a model for the distribution of resources, relations and information throughout the organization to support the design of its structural mechanisms. As such it is a powerful tool to map its complexity.

Suggested Citation

  • Raul Espejo & Alfonso Reyes, 2011. "Distributing Discretion and Designing Structural Mechanisms," Springer Books, in: Organizational Systems, chapter 0, pages 165-186, Springer.
    • Handle: RePEc:spr:sprchp:978-3-642-19109-1_9
    DOI: 10.1007/978-3-642-19109-1_9
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