OrgCon assumes that the organization is an information processing entity. The organization processes information and knowledge in order to coordinate and control its activities and making decisions. Both the information systems and the individuals within the organization have the capacity to process information, but this capacity is not unlimited. Understanding that information handling is limited is essential to understanding both individual and organizational behavior.

Accordingly, organizational design has to match the capacity and demand for information processing and knowledge within the organization. The more uncertain the task, the more information processing is needed.
To handle increasing uncertainty in its environment, the organization can either reduce its need for information processing or increase its capacity to process information.

If the company's capacity does not meet the demand for information processing, a problem arises. This may negatively affect the results of the company. The very paradigm between information demand and capacity is exactly what OrgCon considers. OrgCon estimates the information processing capacity of the organization by analyzing a (particular) set of interrelated factors: the company's organizational configuration, its environment, size, age, internal climate, technology and management style. Capacity, for example, might be measured by written material available, degree of work formalization, extent of decentralization, importance of environmental influence, e.g. legislation, the organizational working climate etc.

The OrgCon analysis compares the company's capacity to process information with the demand for information processing and determines if there is a possible misfit that management should deal with.

Source:
Galbraith, Jay R. 1974. "Organizations design. An Information Processing view". Interfaces. 4(3), 28-36)