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Concepts / Organizational design

Organizational design

Organizational design involves dividing work and integrating effort. Tasks, information, incentives, and authority must work together so individual contributions can support collective action.

Updated: 19 September 2026

Literature concept

Hypothetical example

Analysis, recommendation, approval, and follow-up for an order are distributed between people and systems.

Illustrative example

Important distinction

Organizational design is not reducible to an organizational chart.

Question for managers

Do tasks, information, incentives, and authority reinforce one another?