12.3 Processes, systems and structures

The structuring of an organization concerns the division of tasks and responsibilities among people, the grouping of tasks and people in units, the definition of vertical and horizontal information flows and collaborative relations, and arrangements for coordination. The purpose of structuring has in the past been to provide a more or less stable framework for the effective functioning of organizational processes and the total organization, i.e. of all its members, resources and units, in achieving common goals. This is yet another area in which rapid shifts are taking place, as structures become less rigid and formal.

The products of structuring are various systems and subsystems – organization systems, management information systems, decision-making systems, control and evaluation systems, systems for handling emergencies and crises, and so on. Any complex organization is operated through and with the help of these systems. However, experience shows that structures and systems can easily become a straitjacket, for example, if they try to standardize and prescribe behaviour for situations that are very specific and where standardization does more harm than good. The design and maintenance of systems is a costly affair; some kind of cost–benefit analysis is therefore required in starting a project to design or revise a system. Many organizations need help to prevent proliferation and overlapping of systems, as well as to avoid lack of coordination and conflicting requirements of various systems for supplying and interpreting information.

The process perspective

Recent thinking has emphasized core organizational processes as the principal criteria for developing systems and structures. Traditional fragmentation of