Question: Goold and Campbell proposed five tests based on good general design principles: 1. The Specialised Cultures Test: this test reflects the value of bringing together
Goold and Campbell proposed five tests based on good general design principles:
1. The Specialised Cultures Test: this test reflects the value of bringing together specialists so that they can develop their expertise in close collaboration with each other. A structure fails if it breaks up important specialist cultures.
2. The Difficult Links Test: this test asks whether a proposed structure will set up links between parts of the organisations that are important but bound to be strained.
3. The Redundant Hierarchy Test: any structure design should be checked in case it has too many layers of management, causing undue blockages and expense. De-layering due to redundant hierarchies has been an important structural trend in recent years.
4. The Accountability Test: this test stresses the importance of clear lines of accountability, ensuring the control and commitment of managers throughout the structure. Because of their dual lines of reporting, matrix structures are often accused of lacking clear accountability.
5. The Flexibility Test: in a fast-moving world, an important test is the extent to which a design will allow for change in the future.
Discuss how these five tests mentioned above on good general design principles will influence the functional and horizontal organizational structures.
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