Introduction

“An enterprise is its people,” so stated the famous Japanese industrialist Matsushita Konosuke. Like many successful business leaders, Matsushita believed that effective management of people was an essential ingredient to a firm's ability to reach its goals (PHP Institute, 1994). From an organizational design perspective the question for the executive is: what is the best way to manage people, given the organization's goals, strategy, structure, and task design? As is the case for other dimensions of design, multiple approaches are possible. Deciding among these approaches depends on two critical factors: the number of people in the organization and their professionalization. The organization and the people must fit together. Depending on the design choices you have made with regard to goals, strategy, structure, and task, different approaches to managing people are recommended.