CHAPTER 3

How AI and Process Redesign Will Impact on Organizational Structures and Reducing Headcount—Rightsizing Your Organization

The History of Traditional Organizations

It was in 1760 that Adam Smith set out the ideas that would shape businesses. He made the first symmetrical designs for how an organization should look and designed the first modern organizational structure; it was first used in 1771 by a company called Arkright in Cromford in the United Kingdom. Then, it was adopted by a factory called Smedley in 1784 which is still going—officially known as the world’s oldest factory.

Then, the structure was adopted as the model for success by other companies worldwide, and surprisingly this structure for organizations is still very much ...

Get The New World of Human Resources and Employment now with O’Reilly online learning.

O’Reilly members experience live online training, plus books, videos, and digital content from 200+ publishers.