But these two creates co-ordination problems.The drive for efficiency in a competitive world pushes the organisation towards the division of labour and specialization.Vertical differentiation« . so a cocontrol and co-ordination hierarchy comes into coexistence HierarchyHierarchy.

Hierarchy positions Top management (owners) managers Superiors (team leaders) Sub ordinates (team mem) Low level dept.(clerks. peons) .

(clerks.rules.job enrichment . rules and regulations.incentivizing work .collective decision making and . this authority is circumscribed with policies. peons) People may misuse decision making authority« So to restrict them. hierarchy severely erode motivation.Hierarchy positions Top management (owners) managers Superiors (team leaders) Sub ordinates (team mem) Low level dept. But these devices. (at lower levels) So measures are taken for . devicesregulations.

internal. The design should be highly flexible for ³Boundary spanning´ structures ± marketing. control and coco-ordination system. corporate finance And more rigid. policy making.Problems of organizational design tend to be greatly exacerbated in a turbulent. operations related structures ± production system. . hyper competitive operating environment.

democratic and even permissive oneorganizational culture. design. creating a system that facilitates the conceiving of inventions and creative ideas.The flux and competitive flame in the operating environment imply a high premium on organizational creativity. creating a system in which these inventions and creative ideas are screened properly and those passing the test. control and collective learning .rigorous systems of screening proposals. And 1st one. whereas 2nd one . Organizational creativity imposes two further partially diverging requirements on org. co ordination. implemented successfully as innovations. . 1. planning. 2.

these requirements lay over the complexity produced by having to operate in turbulent and hyper competitive environment.These requirements mimic the creative mind¶s needs for high levels of divergent as well as convergent thinking. Because. .

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