Rethinking Organisation Design. And HR.

During our recent Beam Talk, Professor Geert Van Hootegem (KU Leuven) opened with an observation that reframes today’s HR agenda: one of the most pressing challenges for organisations is not artificial intelligence, but the current reality of the labour market. 

At first sight, that may sound counterintuitive. But once you look at demographic trends and the way work is organised, a different picture emerges. We are still designing organisations for a world of abundance, while operating in a world of structural scarcity. 

A shift that has been building for years 

The labour market situation we are facing today did not appear overnight. It has been developing for more than two decades. 

The working-age population is gradually shrinking, while the number of older people continues to grow. At the same time, people enter the labour market later and careers last longer. This is not a temporary dip. It is a structural shift that changes the context in which organisations operate. 

In practice, this is already visible. In healthcare, for example, capacity is already limited not by demand, but by the availability of people to do the work. The question is no longer only whether demand exists. The question is whether work can still be organised in a way that matches the people available to do it. 

When the logic of design no longer fits the context 

For decades, organisations were designed around specialisation, hierarchy and standardisation. In a labour market with sufficient supply, that logic worked. 

Today, that same logic increasingly creates friction. The more narrowly roles are defined, the harder it becomes to replace people. The more work is fragmented, the more coordination, handovers and control are required. What once created efficiency now often creates rigidity. 

At the same time, the way work is organised does not always support sustainable performance. Research shows that people remain healthy and engaged when job demands are combined with sufficient control over their work. In practice, that balance is often missing. 

Some roles combine high pressure with limited autonomy. Others offer too little challenge. In both cases, potential is lost. In that sense, scarcity is not only something organisations face. It is also something they partly produce through the way work is organised. 

Rethinking the starting point 

If scarcity becomes structural, the starting point of organisation design starts to shift. 

Traditionally, the job came first. Roles were defined, and people were selected to fit them. In the current context, that logic becomes difficult to sustain. 

An alternative is to treat the employee as the more stable element, and the job as something that can be adapted. That means designing work around available capabilities, rather than relying on predefined structures alone. 

From specialized units to integrated teams 

This shift also changes the basic unit of organisation. 

Instead of organising work around narrowly defined roles and fragmented expertise, organisations can structure work around more integrated teams that take responsibility for a broader part of the process. 

By combining complementary skills within teams, organisations reduce handovers and dependency between separate units. This creates more flexibility when demand shifts or when people are unavailable. 

This is not a new idea. But in a context of structural scarcity, it becomes increasingly relevant. 

From functions to flows 

A similar shift can be seen at the level of structure. 

Functional silos can work in relatively stable environments. But in more complex settings, they often lead to fragmentation and loss of overview. 

An alternative is to organise work around flows: value-adding processes such as a patient journey, a product line or a client service. 

This reduces unnecessary coordination and increases ownership. It also makes organisations less dependent on chains of specialised roles. 

What this means for HR 

These shifts have clear implications for HR. 

If organisations move away from allocating people to fixed roles, the focus shifts towards mobilising capabilities across the organisation. This requires a broader view on talent, including not only employees, but also freelancers and other contributors. 

It also requires a different perspective on how work is organised, how autonomy is distributed and how people remain employable over time. 

In that sense, organisation design is no longer a purely structural question. It becomes a strategic one. 

Beyond Human Resources 

Organisation design is no longer a purely structural or technical topic. It increasingly becomes a strategic question. 

As labour market conditions, societal context and the nature of work evolve, this places HR closer to the centre of organisational transformation. Not by applying one fixed model, but by questioning some of the assumptions that have shaped organisations for decades. 

In that sense, we are no longer speaking only about Human Resources, but increasingly about People & Organisation. 

Continue the conversation 

Organisation design and work design are closely related, but not the same. 

While organisation design focuses on structures and decision-making, work design looks at how work is shaped and experienced in daily practice. 

In our next Beam Talk with Eva De Winter (Rewire) on 28 May, we will explore how these ideas translate into concrete interventions in day-to-day work. 

You are very welcome to join.