Strategic Variables: Organizational Structure, Information, and HR Performance

Organizational Structure Variables & Information Processes

For the design of an organizational structure, there are three groups of variables:

1. Variables related to grouping methods.
2. Variables for coordination activities.
3. Variables that ensure coordination moments and are not structurally determined.

Grouping can be performed in two ways: based on results or based on tasks. Thus, there are two basic configurations of design:

• Functional Grouping: People performing the same tasks are grouped together.
• Output-Based Grouping: Each unit has the autonomy to design its own operations and processes.

The design of workflows and operations involves studying how tasks are structured, how information flows, and how people, processes, and machinery are synchronized to reduce time and accelerate system work.

Vertical flows and decision control are designed for the transit of information and for decision-making across different hierarchical levels, both ascending and descending. This includes information flowing from detailed tactical plans down to more operational levels.

The information processing model has two differentiated aspects in its design:

1. What information is needed to operate.
2. What information is required for processing.

Human Resources Variables & Performance Management

The political dimension of Human Resources (HR) within a company includes recruitment (uptake), training, and motivation. These aspects can vary depending on the collective or organizational culture.

If an authoritarian management style is adopted, the focus will be on designing strict control measures. However, if a participatory style is preferred, the political design of HR will emphasize intrinsic motivation.

The nature of HR policies, often referred to as VAID policies (Variables Affecting/Influencing Design), is determined by management's actions on yield and performance. When performance is evaluated in a job, it measures the results obtained in the completion of tasks for that specific position.

A robust performance evaluation system should enable linkage to reward systems based on explicit incentives, where extrinsic factors are present. In contrast, another type of performance evaluation system focuses on the execution of work itself, rather than solely measuring the final outcome, which can have a subjective connotation.

The design variables for measurement, assessment, and control systems are grouped into three categories:

1. Variables based on strict monitoring: This involves the evaluation of performance during task execution through direct observation, either in person or remotely.
2. Variables based on standards-based design of tasks and processes: This compares performance against pre-established standards for task accomplishment.
3. Design variables based on controlling the outcome and targets: This involves setting tools for the verification and monitoring of job results.

The design variables based on standards and outcome control significantly affect performance evaluation. These variables act as VAID, allowing the company to gain firsthand insight into the results of their application.