Conclusion

This book has been about organizational design. Of particular concern have been the two major themes of incentives and power in organizations. Both themes are influenced through numerous organizational instruments described in the course of this book. The design of the strategy and the internal structure, the boundaries and the governance determine the efficiency of the organization. The interplay between these building blocks, with their modules and elements, is of importance. Complementarities between these elements and modules make some sets of configurations superior to others in terms of efficiency. Complementarities between these elements and modules, while adding to the complexity of the design, generate returns from supermodularity that increase efficiency. Economic rents result from such consistently configured designs and are distributable among the constituencies of the organization.