The Paradigmatic Shift in Organizational Design Principles from a Knowledge Perspective

Abstract

Seen with a knowledge paradigm or from a knowledge perspective this study is to discuss new design principles of organizations, comparing classical design principles of organizations from the industrial paradigm. Based on the languages of the knowledge paradigm that are different from those of the industrial paradigm; ‘Knowledge vs. Labor,’ ‘Coordinative and Collaborative Relationship vs. Vertical Control-oriented and Strict Line-Staff Relationship,’ ‘Network vs. Frictional Departmentation,’ ‘Complexity Absorption vs. Complexity Reduction,’ and ‘Unlimited Span of Control vs. Limited Span of Control,’ the concepts of knowledge, organizational knowledge and the rationales for the new organizational design, and five new organizational design principles are discussed in details. The designers or organizers of organization need to have eyes to see where organizations are going to, and how to make organizations effective in terms of the new principles of organizational design based on the knowledge paradigm that is applied and implemented to all of current and future organizations.