ORGANIZATIONAL DESIGNS SUITED TO HIGH-PERFORMANCE UNDER STRESS

This paper discusses the role of organizational design in affecting organizational performance. Using a computational framework, CORP, various aspects of organizational design are examined; e.g., training, communication and command structure, and resource access. Organizational performance is evaluated under both optimal operating conditions and stressed conditions (such as information errors and turnover), given both a simple and a complex task. These analyses suggest that when the organization is facing a choice task where all options are equally likely then the best performing organizational structures are simple (i.e., operational training, teams, and lack of overlap in access to information). In contrast, when the task is biased, i.e., one outcome is more likely than another, then the best performing organizational structures are more complex (i.e., training that relies on experience, hierarchies, and overlap in information access).