Abstract

The literature on organization design is dominated by ideas and theories on how to manage manual work. This understanding is driven by a division of labor based on clear-cut responsibilities and by focusing on hierarchical organization structures like the U-form, M-form, and matrix. Governance mechanisms, for the most part, have been focused on transactional solutions, that is, on the monitoring of work behavior and monetary rewards. Today, knowledge workers dominate the workforce, and the integration of distributed, cross-functional knowledge is crucial. The most important governance mechanisms are no longer based on transactional but rather on transformational solutions that focus on the intrinsic motivation of knowledge workers and their willingness to collaborate. We provide theoretical insight into the collaborative process and discuss three evolving organizational designs that enable knowledge workers to collaborate.