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Design Considerations for Organizational Structures

Organizational Design Options
7S Organizational Model

There are a variety of ways, shown in the Organizational Design Options” figure, in which people can organize to create successful societies, communities and organizations. When designing the organizational structure for innovation organizations the “7S” model provides an overall framework to think through that design. This is shown in the “7S” figure. Note that from a thinking process there are multiplicities of factors that powerfully influence overall organization effectiveness. These factors are interdependent; managers must search for a constantly evolving fit. Finally, a change in one element is likely to set up changes and reactions in all the other elements of the organization. Therefore, managers must take a total systems approach to the implementation of new strategies. This complexity is what makes organizational designs challenging. Descriptions of the components of the 7S model are:

A caution when using this model is that managers are most familiar, and most inclined to attempt to use, and implement strategy and improve organizational effectiveness by relying on the “harder and more tangible” elements of the model. These elements are strategy, structure, and systems. However a study of companies (that were the highest performers in their industries) revealed that their General Managers payed far more attention to the “softer” elements, versus their counterparts in less successful competitive firms. These elements are style, staffing, skills, and shared values.

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