Tradeoffs in macro organization designs.
Following control, cooperation, and autonomy, different variable weight creates different effects:
More control than cooperation creates more consistent operations.
- Less, more innovation.
More cooperation than autonomy creates synergy between units.
- Less, accountability is improved.
More control than autonomy increases the presence of the global perspective.
- Less, decisions are made closer to the action.
- Autonmous organizations have self-sufficient units.
- Controlled organizations are bureaucracies, franchies, or vertically integrated.
- Cooperative organizations have project-based, and/or horizontally integrated teams.
- Matrix organizations combine input (control) with output (autonomy) in a way where both leaders must cooperate.
The organization’s function suggests an ideal solution space for its operations.