ABSTRACT

Many large organizations today are structured along multiple dimensions, representing markets, products, and internal services. However, one has overlooked the differences between alternative ways in which to design multidimensional organizations, which differ in terms of their complexity and flexibility. Axiomatic design principles may be used to compare three multidimensional organizational models: The traditional matrix structure, the front-back model, and the modular organization. Unlike the traditional matrix structure, the modular organization (and some implementations of the front-back model) rely on internal customer-supplier relationships to link internal units, rather than reporting (authority) relationships.