There are often real and important conflicts between the type of organizational structure called for if the tasks are to be achieved with minimum cost, and the structure that will be required if human beings are to have their needs satisfied. Considerable management judgment is called for when decisions are made as to the allocation of work activities to individuals and groups. High standardization of performance, high manpower utilization and other economic advantages associated with a high level of specialization and routinization of work have to be balanced against the possible effects of extreme specialization in lowering employee attitudes and motivation.

Organizations can be defined as groups of people who must coordinate their activities in order to meet organizational objectives. The coordination function requires strong communications and a clear understanding of the relationships and interdependencies among people. Organizational structures are dictated by such factors as technology and its rate of change, complexity, resource availability, products and/or services, competition, and decision-making requirements. The reader must keep in mind that there is no such thing as a good or bad organizational structure; there are only appropriate or inappropriate ones.

Even the simplest type of organizational change can induce major conflicts. The creation of a new position, the need for better planning, the lengthening or shortening of the span of control, the need for additional technology (knowledge), and centralization or decentralization can result in major changes in the sociotechni-cal subsystem. Argyris has defined five conditions that form the basis for organizational change requirements4:

These requirements . . . depend upon (1) continuous and open access between individuals and groups, (2) free, reliable communication, where (3) independence is the foundation for individual and departmental cohesiveness and (4) trust, risk-taking and helping each other is prevalent so that (5) conflict is identified and managed in such a way that the destructive win-lose stances with their accompanying polarization of views are minimized. . . . Unfortunately these conditions are difficult to create. . . . There is a tendency toward conformity, mistrust and lack of risk-taking among the peers that results in focusing upon individual survival, requiring the seeking out of the scarce rewards, identifying one's self with a successful venture (be a hero) and being careful to avoid being blamed for or identified with a failure, thereby becoming a "bum." All these adaptive behaviors tend to induce low interpersonal competence and can lead the organization, over the longrun, to become rigid, sticky, and less innovative, resulting in less than effective decisions with even less internal commitment to the decision on the part of those involved.

Organizational restructuring is a compromise between the traditional (classical) and the behavioral schools of thought; management must consider the needs of individuals as well as the needs of the company. Is the organization structured to manage people or to manage work?

There is a wide variety of organizational forms for restructuring management. The exact method depends on the people in the organization, the company's product lines, and management's philosophy. A poorly restructured organization can sever communication channels that may have taken months or years to cultivate; cause a restructuring of the informal organization, thus creating new power, status, and political positions; and eliminate job satisfaction and motivational factors to such a degree that complete discontent results.

Sadler defines three tasks that must be considered because of the varied nature of organizations: control, integration, and external relationships.5 If the company's position is very sensitive to the environment, then management may be most concerned with the control task. For an organization with multiple products, each requiring a high degree of engineering and technology, the integration task can become primary. Finally, for

4. Chris Argyris, "Today's Problems with Tomorrow's Organizations," The Journal of Management Studies, February 1967, pp.

Project Management Made Easy

Project Management Made Easy

What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.

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