A Dynamic Programming Model for Organisational Designing

Abstract

Organisational design problems have been formulated as that of minimising personnel related costs subject to some constraints with a heuristics as solution procedures. The difficulty of verifying the effectiveness of such heuristics in producing optimal organisation structures has created model acceptability problems. The objective of this study is to develop an organisational design algorithm that guarantee optimal organisational structure with minimum personnel related costs. The model was applied to an organisations design problem of an existing firm. The study provides a methodology for assessing the effectiveness of the existing heuristics.

Keywords: Organisational design, Organisational structure, Optimal organisation, Personnel cost Dynamic programming.