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Examining the Relationship Between Trust and Control in Organizational Design

(How) Can Divergent Requirements be Reconciled?

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Part of the Information and Organization Design Series book series (INOD,volume 6)

Abstract

Recently, organization design has been confronted with divergent demands. Whereas many organizational forms recommended to enhance organizational performance build on trust, control-oriented forms are suggested to assure compliance with an increasing number of regulatory norms. Companies face the challenge to meet both requirements concurrently. Against this background, this chapter examines whether the contrasting demands do in fact involve trade-offs and if so, whether and how they could be reconciled. Reconciling different demands may benefit from considering the following steps: Distinguish functional demands from concrete structural forms; analyze behavior which is critical for achieving the functional requirements; analyze contingencies of critical behavior and arrive at an informed behavioral assumption; design the organizational form by deliberating alternative structure building and structure flanking measures which are effective for facilitating critical behavior. If different demands have to be met simultaneously, the design elements must be thoroughly balanced.

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Grundei, J. (2006). Examining the Relationship Between Trust and Control in Organizational Design. In: Burton, R.M., Håkonsson, D.D., Eriksen, B., Snow, C.C. (eds) Organization Design. Information and Organization Design Series, vol 6. Springer, Boston, MA . https://doi.org/10.1007/0-387-34173-0_3

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