Organizational structure, information technology, and R&D productivity

To improve R and D productivity and performance, two types of communication must be managed properly. First, there is communication which is required to coordinate the many complex tasks and subsystem interrelations that exist on an R and D project. Second, there is communication which insures that the technical staff of the project remain current. Organizational structure can be used to achieve either of these goals. Since different structures are needed for the two, it is important to consider the situations in which one or the other dominates. The author discusses the tradeoffs between the two types of communication and the ways in which these tradeoffs have been reflected in management´s choice of organizational structure. Project organization facilities task and subsystem coordination. Functional organization connects engineers more effectively to the technologies on which they draw. Three parameters are provided which can be used to characterize project situations and guide the decision on organizational form. In addition, there is the possibility that improvements in information technology will be able to substitute for one of the two organizational forms and allow greater use of the other, thereby easing the organizational tradeoff.