Top Highlights

• Another well-established principle is that of minimizing coordination cost by grouping interdependent roles together.4 It
• A well-designed organization is an effective organization.
• Organization design is sometimes considered the applied variant of organizational theory.
• The key assumption is that it should be the goal to minimize complexity in organization design, as complexity reduces the probability that a system will achieve its mission and goals.
• The basic process of dividing a system, composed of interacting elements, into units and sub-units is called decomposition. In this process, one decides which tasks, roles, or processes should be grouped together in the same unit, and implicitly separates other tasks, roles, and work functions.