The organization design framework portrayed in Figure 1 is called the
“Star Model™.” In the Star Model™, design policies fall into five categories.
The first is strategy, which determines direction. The second is structure, which
determines the location of decision-making power. The third is processes,
which have to do with the flow of information; they are the means of
responding to information technologies. The fourth is rewards and reward
systems, which influence the motivation of people to perform and address
organizational goals. The fifth category of the model is made up of policies
relating to people (human resource policies), which influence and frequently
define the employees’ mind-sets and skills.