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UU Introduction to Economics and Business Economics - Summary for Waterman, Peters and Phillips Text 'Structure is not Organisation'
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Summary – Structure is not Organisation – Waterman, Peters and Phillips:Diagnosing and solving organisational problems structural reorganisation (structure) and
several other related factors.
A structure is not an organisation problems of organisation effectiveness and concerns
about the relationship between structure and organisation.
Organisation design techniques of behavioural sciences were not providing useful
alternatives to structural design.
Structure follows strategy, but strategy rarely seemed to dictate unique structural solutions.
Main problem of Strategy = Execution Organisation the problem of organisation
effectiveness threatened to prove circular.
Structure and Matrix (= where something grows or develops) organisation.
Limited capacity of decision makers to process information and reach “rational” decisions.
Role of effective CEO harness social forces in an organisation to shape and guide values.
There is a rational model which was attacked new wave of thinking the idea that
organisations adapt slowly the practical value and important assumptions of organisations
have ceased organisational learning is seen as a stream of solutions / decision makers /
opportunities interacting randomly (Herbert Simon).
Organisations frequently hold onto wrong assumptions despite evidence that has changed and
the organisation probably should too due to competing demands, organisations cannot
handle decision making in a completely rational way structure cannot be the biggest tool
that can change organisations with most efficiency / to the best effect, but it is still important.
Value system a foundation for long-term continuity.
The “rational” view is all right but has decided limits Herbert Simon (1977) describes the
rational system which does not work properly because not all economists or enterprises keep
themselves to the expected system.
Most organisations cannot maximize no access to complete information working with
simple decision rules in order to limit information that is really needed.
The goal of a manager / CEO of an enterprise is organisation effectiveness the subject of
organisation and structure is more complex than models have allowed for.
New framework for organisational thought and improvement productive organisation
change is not simply a matter of structure and it is not as simple as the interaction between
structure and strategy (though, structure and strategy are still important) Waterman, Peters
and Phillips claim that effective organisational change is the relationship between a
multiplicity of interconnected factors / elements / variables: structure, strategy, systems, style,
skills, staff, and superordinate goals.
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