Star Model

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THE STAR MODEL™ JAY R. GALBRAITH

The Star Model™ framework for organization design is the foundation on which a company bases its design choices. The framework consists of a series of design policies that are controllable by management and can influence employee behavior. The policies are the tools with which management must become skilled in order to shape the decisions and behaviors of their organizations effectively.
What is the Star Model™?
The organization design framework portrayed in Figure 1 is called the “Star Model™.” In the Star Model™, design policies fall into five categories. The first is strategy, which determines direction. The second is structure, which determines the location of decision-making power. The third is processes, which have to do with the flow of information; they are the means of responding to information technologies. The fourth is rewards and reward systems, which influence the motivation of people to perform and address organizational goals. The fifth category of the model is made up of policies relating to people (human resource policies), which influence and frequently define the employees’ mind-sets and skills.

Figure 1—The Star Model™
© Jay R. Galbraith. Do not post, publish or reproduce without permission.
Strategy
Strategy is the company’s formula for winning. The company’s strategy specifies the goals and objectives to be achieved as well as the values and missions to be pursued; it sets out the basic direction of the company. The strategy specifically delineates the products or services to be provided, the markets to be served, and the value to be offered to the customer. It also specifies sources of competitive advantage.
Traditionally, strategy is the first component of the Star Model™ to be addressed. It is important in the organization design process because it establishes the…...

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