A Theory for Optimal Organization

Even though the question as to whether optimal organizational structures exist has been asked repeatedly, organization theory has not been able to answer it in general form. Over time, several useful heuristic principles to direct the structuring of organizations have emerged. Moreover, powerful models, inspired by general systems theory and cybernetics, have been elaborated, which establish the preconditions for organizational viability. Optimization theory has provided solutions to specific organizational problems, most of them being of a heuristic nature. In this paper, a new approach is suggested for assessing and ultimately also for pursuing the optimality of organizational designs. It is proposed that the optimal fractal dimensionality of organizations is equivalent to that of living organisms. This hypothesis is submitted to and corroborated by a first test. Herewith, a new path to a theory-based design of optimal organizations has been opened up, the implications of which for the methodology of organization design may be substantial.