Organizational Design Systems: Enabling Decentralized Organizing and Facilitating Adaptation Through Behavioral and Technological Conditions

Self-managing organizations (SMOs) radically decentralize authority and decision-making throughout the organization to free the employee from constrictive hierarchies and management. As a result, SMOs also delegate more work to employees. This study (in progress) delves into the strategic organizational design of self-managing organizations (SMOs), the needed employee input, and their capacity for adaptation. SMOs distribute design responsibilities across all employees, leading to new behavioral requirements and coordination challenges. This paper abductively investigates how SMOs organize their design activities to facilitate adaptation, employing a sociotechnical systems (STS) lens. 22 Dutch service industry SMOs are investigated through archival data, interviews, and surveys to derive a design system model. The abducted model is tested using fuzzy-set qualitative comparative analysis (fsQCA). Initial findings suggest that successful SMO design systems hinge on three key constructs: formalization, psychological ownership, and perceived hierarchy. These constructs operate within the technical and social subsystems of the organization. The study contributes to organizational design theory by exploring decentralized designing and delineating diverse design system configurations for adaptation. Our investigation also reveals the possible fragility of these systems and the need for substantial investment. Finally, we identify opportunities and requirements for individuals within SMOs.