Morgan's DIP Model

The proposed DIP model is an organizational structure of an investment organization. An organizational structure characterizes the framework for ways to delegate roles, powers and responsibilities within an organization. The organizational structure, facilitate an organization in rendering decision, shaping the organization or reaching its goals and objective. From a microcosmic view, DIP specifies an organization structure for an investment organization. Furthermore, the name Disciplined Investment Process implies, it is a systematic process. As such, the predestined of view of DIP perhaps, is a mechanistic structure where participants hold a specified task with hierarchical commands and controls. For instance, fundamental analysts using their

However, reflecting on the Contingency Theory, which asserts that there is no one best way to manage an organization, the presumption of DIP as a mechanistic structure is inappropriate. Moreover, the bureaucratic organizational structure may limit the opportunity to react to the varying market environment (see Derman epigraph). Csaszar (2012) questions if it is true that hierarchy hampers innovation. The author also bring to light how the tailoring the structure of an organizations to compensate for the inadequacy of any one individuals. In reference to Derman’s point of breathing life into a model, I propose ruminating the renowned work of an organizational theorist Gareth Morgan. Morgan (1986) describes a contingency approach as a way for an organization to minimize of bureaucracy and maximize alignment with the environment in which it operates. In evaluating organizations and their environment, Morgan differentiated organization on a sliding-scale from mechanistic to organic forms. Accordingly, the reasons that a mechanistic organization operates well in a stable environment while organic organization are better able to adapt in fluctuating environments. Based on the