Organizational implications of systems thinking: Multidimensional modular design

Despite a well recognized systemic principle that parts of an organization are interdependent and the nature of their interaction defines the behavior of the whole, we have stubbornly held to the illusion that each function is more or less self-contained and can be treated independently. For a majority of managers the unidimensional mode of organization based on structurally defined tasks, segmentation and hierarchical coordination of functions seems to be the only acceptable way of organizing the work. A predominant management culture continues to value narrow specialization very dearly and considers any forms of redundancy in the organizational structure as wasteful and inefficient. However, the ability to adapt requires some forms of flexibility and responsiveness, which in turn demands that some degree of redundancy be built into the system.The required level of interaction and flexibility in an organization can be achieved by creating a modular structure embedded in a multidimensional scheme. The resulting mode of organization is capable of redesigning its structure and redefining its functions, so that it can exhibit different behaviors and produce different outcomes in the same or different environments.