How to Link the Efforts of an Organization

Linking refers to the integration of effort, which is the second of the two interlinked problems at the core of organization design (the first being the division of labor). The extent of linking necessary will depend on the design decisions made with regard to the division of labor. Linking mechanisms are needed to address interdependencies that remain in the structure that was designed. There are six types of interdependence. Goal interdependence and task interdependence are the two most important ones and will exist in almost any structure. The other types of interdependence are around sharing and leveraging resources (funding, support services, brand names, etc.), sharing knowledge, working according to standards, and delivering to the same market. Interdependencies in a structure can be identified using these six categories. Only the most critical interdependencies should be addressed in the organization design. The linking mechanisms available to organizations are authority, rewards, management processes, tacit coordinating mechanisms, and lateral roles and teams. These linking mechanisms differ in terms of complexity and cost and in terms of their formalization. The least expensive linking mechanism that adequately addresses the critical interdependence in question should be chosen. Remaining interdependencies can be addressed by informal means of coordinating.