ABSTRACT
Organizations have been around for centuries. Through reverse engineering, we can assume the great
pyramids of Egypt required complex formal organizations to mobilize and manage the manpower
necessary for design and construction. However, modern organizational design has its foundation in
the Classical era, starting around 1900. The classical school of organization and its iconic methods of
scientific management, supervision, etc. had its roots in the military and the church. The most noticeable
derivation of the classical school is the organization’s structure. This structure is the hierarchy or group-
ing and segmentation of members to help distribute the purpose or mission. In theory, each time strategy
changes, a decision should be made whether there should be a respective change in organizational design.
According to Pasmore (1988), people come together in an organization in a choiceful manner. That is,
their collaboration is represented by informal contracts among people. Sometimes the organization
facilitates these contractual arrangements and sometimes, if a mismatch is evidenced, the organizational
design inhibits these relationships.
