In this paper we present a general model of organizational problem-solving in which organizations engage into an activity of cognition (un-derstanding the world in which they operate) and an activity of action (implementing those policies which cognition indicates as targets which better fit the world’s characteristics). Both cognition and action are adaptively determined as the organization faces limitations in the cog-nitive capabilities of its members and in its control functions. Interde-pendencies among relevant dimensions of the environment and among basic operational tasks are only partly understood. The model allows us to study various combinations of decompositions of cognition and ac-tion and various stylized reward systems. In particular, we can address issues of centralization vs. decentralization of cognition, production and rewards schemes and the possible complementarities among these choices. ∗Luigi Marengo gratefully acknowledges financial contribution from the European Com-mission within the project NORMEC (SERD-2000-00316), Research Directorate, 5th frame-work program. The authors are the only responsible for the opinions expressed in this paper, which are not necessarily those of the European Union or the European Commission.