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Organizational structure in process‐based organizations
Author(s) -
Vanhaverbeke Wim,
Torremans Huub
Publication year - 1999
Publication title -
knowledge and process management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.341
H-Index - 44
eISSN - 1099-1441
pISSN - 1092-4604
DOI - 10.1002/(sici)1099-1441(199903)6:1<41::aid-kpm47>3.0.co;2-4
Subject(s) - dimension (graph theory) , process (computing) , organizational structure , corporation , process management , organizational unit , business , computer science , core (optical fiber) , business process , product (mathematics) , knowledge management , organizational architecture , control (management) , key (lock) , work in process , management , marketing , economics , mathematics , telecommunications , geometry , computer security , finance , artificial intelligence , pure mathematics , operating system
This paper investigates the role of the organization structure in process‐based organizations. We argue that companies cannot be designed upon organizational processes only or that process management can be simply imposed as an additional structural dimension on top of the existing functional or product dimension. It is more promising to consider process‐based companies as organizations with a multidimensional structure with process ownership as a dominant dimension. The paper focuses on a number of consequences of the implementation of process‐based organization structures. First, the complementary role of different types of processes is clarified. Second, we focus on the question how processes can be translated into the design of organizational units. Two key ideas underpin a process‐based organizational structure. First, organizational units are organized around core processes. Second, other processes are added to these units minimizing the necessity of cross‐unit coordination. This has several implications for planning and control activities and the way how process‐based business units fit together to create a performing corporation. The latter can no longer be conceived within the traditional strategy–structure paradigm because of the fundamentally different role of middle and top managers. Copyright © 1999 John Wiley & Sons, Ltd and Cornwallis Emmanuel Ltd.