IDEAS home Printed from https://ideas.repec.org/p/zag/wpaper/0806.html
   My bibliography  Save this paper

Process-based Organization Design Model: Theoretical Review and Model Conceptualization

Author

Listed:
  • Tomislav Hernaus

    () (Faculty of Economics and Business, University of Zagreb)

Abstract

The complexity of today's business world is translated into complexity of the company's organization design (Galbraith, 2002). Organizations are forced to quickly adapt to emerging complexity if they want to survive. The change is addressing all areas of business, especially questioning organizational effectiveness and trying to find optimal solutions for doing business. In accordance with requirements, competitive trends are pushing executives to rethink traditional design configurations. Factors such as increased competition in cost, quality and service, and technical change have forced companies not only to seek out new ways of doing old tasks, but also new ways of organizing either old or new tasks (Cross, 1990). Such focus on the flow of work within organizations, but as well as between them, is emphasizing process orientation as a new management paradigm. Inefficiencies of the two most commonly present structures – functional and divisional, in addition to emerging business trends, place the emphasis on a process-based organization as one of the possible solutions. The process-based organization is lead by the process paradigm, which is focused on the horizontal view of business activities and alignment of organizational systems towards business processes. Regardless of a large interest on business processes, existing organization design theory offers only general guidelines for process-based organizations or more precisely, a process-based organization design model. Consequently, the purpose of the paper is to demystify process-based organization design model. By clearly distinguishing between different levels of process orientation, and by addressing characteristics of the chosen model the paper will lead to better understanding of this way of organizing. Eventually, an operationalized model of process-based organization is developed. Furthermore, the paper elaborates on differences between process-based and other organizational structures and philosophies (e.g. functional, product, matrix, project, team-based). Besides structural elements, which will be in the primary focus, the paper will discuss the alignment of all other important organization design elements for process environment (e.g., management style, reward systems, performance metrics, people practices, organizational culture, etc.). There would be proposed necessary adjustments of organizational elements which should be aligned with the process-based structural solution. In such way, some of the blind spots of process-based organization design model would be revealed, providing practical implications for its implementation and ultimately, offering solution for rising business complexity.

Suggested Citation

  • Tomislav Hernaus, 2008. "Process-based Organization Design Model: Theoretical Review and Model Conceptualization," EFZG Working Papers Series 0806, Faculty of Economics and Business, University of Zagreb.
  • Handle: RePEc:zag:wpaper:0806
    as

    Download full text from publisher

    File URL: http://web.efzg.hr/repec/pdf/Clanak%2008-06.pdf
    File Function: First version, 2008
    Download Restriction: no

    References listed on IDEAS

    as
    1. Bénédicte Vidaillet & V. D'Estaintot & P. Abécassis, 2005. "Introduction," Post-Print hal-00287137, HAL.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ewa Ziemba & Iwona Oblak, 2012. "Information systems in process driven business organizations (Systemy informatyczne w organizacjach zorientowanych procesowo)," Problemy Zarzadzania, University of Warsaw, Faculty of Management, vol. 10(38), pages 8-24.
    2. Tomislav Hernaus & Ana Aleksic & Maja Klindzic, 2013. "Organizing for Competitiveness – Structural and Process Characteristics of Organizational Design," Contemporary Economics, University of Finance and Management in Warsaw, vol. 7(4), December.

    More about this item

    Keywords

    organization design; process-based organization; process-based organization design model; business processes;

    JEL classification:

    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General
    • M15 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - IT Management

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zag:wpaper:0806. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (WPS). General contact details of provider: http://edirc.repec.org/data/fefzghr.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.