Business

What is organization design?

Organizational design is a process used to increase the probability of success of an organization. In more specific terms, it is when an organization’s people, information and technology are integrated into a formal process. It is a design that serves in most cases as a model of what the organization has set itself to achieve. In some organization it is the template that covers the objectives, mission and vision. This design helps improve the probability of success.

The design of the organization varies from one establishment to another but there is a consensus on what it implies. Generally, it involves the processes involved in restructuring or redefining an organization to give a defined structure that encompasses the roles of the organization. For some organization, the processes imply aligning the merits and talents of the personnel with the structure and process of the organization.

What are the benefits of organizational designs?

Where there are poor or non-existent organizational designs, there are numerous contractions. This is the first thing that has proper design directions. It addresses the roles of individuals in a team, the role of each person, and an adequate description of their duties.

It gives space for ideas to be shared and in the process speeds up the decision-making process. It puts less stress on managers and helps avoid unnecessary complexity. It helps pinpoint problems that would have been easily overlooked and points to opportunities that should be explored.

Types of organizational designs

The types of organizational designs available fall into two main categories. These categories are

  • Traditional
  • Contemporary

Each of these designs has its particularity. Traditional design also encompasses divisional structures, functional functions, and simple structures. On the other hand, contemporary designs include more complexity such as organizational learning, boundless organization, team structure, project structure, and matrix structures.

Key elements in organizational designs

Regardless of the type of organizational design that a company chooses; there are some key elements that cannot be overlooked. These elements include Job Specialization, Departmentalization, Chain of Command, Span of Control, Centralization, and Formalization.

Each of these elements plays a vital role in determining what the design will be. It is impossible to determine what type of design will work best. Even for a sole proprietor, it is still necessary to have a structured design. Many times, the purposes for which a business, team, or organization exists serve as the lynchpin for the design.

Leave a Reply

Your email address will not be published. Required fields are marked *

1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1