Before defining the Hax and Majluf model in depth and knowing its peculiarities, we must know its origin. It owes the name to its creators, the professor at the MIT Sloan School of Management, Arnoldo Hax, and the engineer and professor Nicolás Majluf both of Chilean origin.
These two authors worked together to produce a publication in 1984 entitled “Strategic Management: an Integrative Perspective.” This volume is part of a group of three works in which various strategies to be carried out by companies are discussed.
In the case of the Hax and Majluf model, One of the references that its creators used to develop this new system was the contingency model, by Paul Lawrence and Jay Lorsch created at the end of the 60s. What these authors stated is that all the jobs that make up the organization must be segmented, coordinating between them, and at the same time integrating into the total, which is the company.
For the Hax and Majluf model, the creators went further, delving into business strategies oriented towards the business itself and functionality. Below we will see in depth all the elements contained in this system.
After briefly reviewing the origin of the Hax and Majluf model, it is time to delve into how this method works. What these authors raised was the importance of three specific elements and their combination. These elements were the structure of the organization, the company culture and the strategies carried out.
The method proposed by the Hax and Majluf model It serves to analyze in a simple way the design of the organization in question and be able to draw conclusions about its efficiency, discovering those weakest points in which modifications can be made to achieve an improvement, sometimes quite significant.
One of the keys that this system provides is the idea that the strategies used by the company must be established according to the existing business culture. That is, the corporation’s way of proceeding must be a reflection of its own identity, so that there is congruence between both dimensions.
Another characteristic that Hax and Majluf’s model points out is that The conduct of the members of the company must be taken into account both individually and collectively As a group, they will have a series of responses to the measures adopted by the organization, which will modulate its climate, in one direction or another.
This approach also warns of the importance of using appropriate strategies to achieve constant progress in the organization, giving all its members the tools they need to use their full potential, with the consequent benefit that this has on the company and the achievement of its objectives.
The importance of structure
We have already described some of the general characteristics of the Hax and Majluf model. Now We will delve into the concept of organizational structure, one of the pillars of this system , for these Chilean authors. Mainly, this phenomenon would have to complete two objectives for the correct functioning of the company.
The first of them is to establish effective ways for the corresponding strategies to be adopted in the organization. On the other hand, This structure must be designed so that all the procedures of the company’s components can be carried out normally without impediments.
They are simple requirements, but necessary, so that the rest of the factors can function properly. Furthermore, the Hax and Majluf model speaks of the importance of achieving integration among all members within the organizational structure and making them participate in the strategies adopted, based on the company’s values.
Another element comes into play here, which is the vision of the organization, that is, the objective it has set to achieve in the medium and long term. This vision will be the framework that must be taken into account when selecting and establishing the strategies we were talking about. This is how all the elements are connected, according to the Hax and Majluf model.
Furthermore, the authors state that, In order to implement the vision of the company as an element shared by all its members, you must be precise in the execution of all administrative tasks , so that communication is fluid and everyone has access to information in a simple and appropriate way. The team responsible for human resources will have a special relevance in this mission.
But Not only should the company’s official channels of communication be taken into account, as informal channels are sometimes equally or more important , and for the question of vision, they are essential. Therefore, the organization must be aware of these other ways of transmitting information and try to make use of them, thanks to the team members who have access to them.
Once the implementation of the vision has been achieved in all components of the company, and with an optimal organizational climate, the company will be ready to try to achieve the goals it has set throughout this process.
The design of the company according to the Hax and Majluf model
One of the uses of the Hax and Majluf model is the help it provides to generate an efficient organizational design. In order to achieve this, you have to go through a series of milestones. The beginning cannot be other than establishing the most basic and necessary company structure, from which we will start It must contain those departments essential for operation.
In this prototype structure, the existing hierarchical relationships between the different levels of the organization must already be clearly defined. Once you have that basic model, it is time to go deeper and make it progressively more complex
This process must be carried out by establishing the specific details that were not initially included, related to the specific relationships between departments and teams, the processes that each one must carry out, the deadlines that have been agreed for each type of task, and any other issue that enriches the definition of this structure.
Therefore, we observe that, according to the criteria of the Hax and Majluf model, What is achieved is to go from a very simple structure format that is easy to develop, to a much more complex one, through a progressive approach that facilitates this task The opposite case, that is, directly developing a complex model, could be much more complicated if we do not start from that first structural level.
We observe a clear advantage of this methodology over other ways of acting, as it turns one of the most complicated and at the same time sensitive procedures of business design into a more affordable and easy task to tackle.
In any case, the process would not end there. Once you have this detailed structure model, it must be accompanied by the entire list of processes that must be carried out for the correct functioning of the company In this list we would be talking about the ways in which communication between members will be carried out or how control will be carried out over the different procedures.
Procedures related to compensation, human resources administration, and of course the planning of any required task would also be included. Obviously, this will not be a static scheme, since the company is an organism in constant evolution and growth.
Therefore, it will be necessary to adapt this model to the changing reality in which the organization operates. It is another of the indications made by the creators of the Hax and Majluf model.
