So, we have just discussed the structural dimensions that managers should consider when designing their organizations. But simply looking at structure is not enough. The context in which it is implemented, both within and outside the organization matters. Let's take a look. So, let's have a look at the contextual dimensions of organization design. These are basically things that characterize the whole organization, but are not necessarily what you consider classical organization design variables. Right? So they're part of the organizational setting and the organizational embedding that influences and shapes the structural dimensions that you have to fit in there. So what are these? For example, size. Right? So size is measured and is described as the number of employees working within an organization, or its sub-parts such as a plant or a division. Right? And that, of course, is going to affect how you're going to choose the structure of the organization, how you're going to choose the structural dimensions. Technology. So the tools, the techniques, the actions to transform inputs to outputs. Your organization is going to look very different if you have an assembly line or if you have individual rooms or team rooms in which people produce craftsman-like output. The environment, loosely described as all elements that are outside the boundaries of the organization. This could be government that may issue regulations that we have to follow. This would be customers that demand certain things such as fast delivery, customized products, and so on. Other organizations, competitors, who offer certain things that you may have to copy as well. Strategies and goals, so that's the whole point of strategic organization and design. The purpose, the competitive techniques that set organizations apart from other competitors. They will of course determine and be determined by, to some extent, the structural dimensions of an organization. And finally, the culture. Are there unwritten values? Are there beliefs? Is there a common understanding and are there norms that are shared by the employees of an organization? Right? So you can see quite often in the business press that there are organizations that have a very clear organizational culture that determines the way that they act and that determines the way that they are organised. Now, what's interesting is that the structural dimensions have become less important, and that structure overall has faded to some extent. Most organizations today are striving for greater horizontal coordination of work activities. In other words, it's becoming less common that there's a boss who tells everyone what to do, but it's more common that people will now coordinate in some ways, in a non-hierarchical way to produce a common output. Second, the boundaries within and between organizations are becoming more flexible because the environment changes. So there are new forms of organizing that occur and that become more efficient. We just give you one example within organizations. Valve Software is a US firm that produces entertainment software. And they've chosen an organization or an organizational form that's actually quite innovative, that's quite different. So there are open spaces rather than offices. That's something you see in many organizations. There are no formal job titles. There is no boss, so every employee will select their own tasks and how they work. So, project teams may emerge because someone has a good idea and others follow. Project teams may emerge because a customer wants something and a number of individuals get together to try to fulfill the customer's need. So that's quite an interesting and new of organizing in a very horizontal way. Looking at between organizations, there's a coalition called Financial Innovation Now, consisting of all the big tech firms, many big tech firms, Apple, Google, Amazon, Inuit, PayPal. These are competitors that got together trying to lobby to ease the heavy regulation that surrounds financial technologies. Right? And these are phenomena that we see, that we are likely to see quite often, because cooperation and alliances even between competitors are quite common, because often competitors do not just have conflicting goals, but they also have common goals, such as influencing regulatory environment and so on. So now it's time for the next in-video quiz. While structuring organizations helps us accommodate many challenges, it also generates interdependencies between tasks and agents which need to be managed. If you're interested in this topic that's fantastic. You will hear a lot more in the second module. But for now, let me show you how you can approach the basic problems of cooperation and coordination.
