Organisational structure and Elliot Jaques' stratified systems theory

Abstract

Organisational design needs to be in line with capabilities of the individual-inrole. The structure of an organization directly impacts the overall effectiveness and ultimately the success of such an organization and the number of layers required in any given hierarchy is a product of the organization’s mission (Jaques, 1989). Stratified Systems Theory (Jaques, 1989) defines work in seven strata based on a basis of decision-making complexity. The research presented here identifies a specific organisation’s current level of work based on complexity and the time-span of decision-making. Research was done in one specific geographical region of a company operating in the Supply Chain and Logistics industry in South Africa. Qualitative data collection was done by means of interviews with a defined sample group that provided an adequate cross-section of the main functions of the business, however, the sampling technique used may not provide results representative of the entire population.

The Brunel Institute for Organisation and Social Studies’ (BIOSS) Matrix of Working Relationships was used as main basis for reporting results. The research indicates that the organisation is presently, according to Jaques Stratified Systems Theory (Jaques, 1989), operating at one level below their intended level that will allow them to effectively meet their longterm strategic objectives. The report identifies shortcomings in terms of the current capabilities of the individual-in-role and the actual work requirements, setting a foundation for further analysis of individual capabilities for effective organisational design.