Key Concepts of Organizational Design - Essay Example

? Key Concepts of Organizational Design Number Key Concepts of Organizational Design Organizational design is an essential component of any given enterprise that seeks to reap full benefits of business related activities and operations. A number of relationships are defined prior to organizational design. Organizations lay down strategies that are aimed at achieving predetermined and desired results. The structure of the organization is fundamental, and it should be identified right from the design (Jones, 2004). On the same note, the organizational processes are integral to the design adopted. In other words, organizational design outlines the relationship between the said strategies, structure and organizational processes. Importance of Organizational Design Choices Design choices are highly dependent on the developed strategies within an organization. All operations in an organization take into account that organization’s purpose in the short run and long run, define organizational culture and give an outlay of that organization’s operational and performance processes. Choosing the right organization design is beneficial, in that it promotes competitive level of an organization. On the same note, it enhances technology integration into the organization’s operational processes. Design choices aid the process of management control. The management addresses emerging issues within an organization, alongside overseeing actual performance of the firm in the various fields of interest. Making the right choices can improve control by the management and vice versa. Improved control would require that the firm be efficient, given that firm’s optimal performance. Consumer and competitor issues are properly addressed within the right design choices (www.leadership-and-motivation-training.com). On the same note, optimal performance of an organization is highly dependent on the business framework adopted. The right business framework can only be implemented within the right design choices. Organizational diversity and dynamism triggers growth, expansion and development in the organization. This is essential in the organization especially in line with the achievement of organizational goals and objectives. In order to realize such changes, various aspects of the organization keep changing. This may take the form of change in organizational culture to suit the desired outcome. In this regard, growth and development of the organization makes designs adapted by that organization complex over time. Therefore, making the right design choice is core to the organization’s performance efficiency. Organizational Structures One fundamental point to note is that organizational structure is different from organizational designs. An organizational structure relates to powers and authority within the organization. It presents the distribution of power and authority within the organization. The organization has goals, objectives and values to uphold (Galbraith, 2002). These factors are encompassed in the design and not the structure. The organizational structure oversees the process through which the design is operationalized. Mechanistic structure This structure relates to people’s behavior, inside and outside the organization. Accountability in such behaviors is of critical importance. Communication is a fundamental component of this structure and it observes hierarchical rankings in the organization. This structure is important because it defines duties and responsibilities of individuals prior to the operations of the firm. Individual-task correspondence is an advantage in this structure. It encourages a sense of responsibility and regulates occurrences of inappropriate behaviors in the organization. This structure is however characterized by a number of disadvantages. This structure is not suited to complex mechanisms, and therefore its integration in complex operation and performance mechanisms is significantly challenging. The structure does not foster power delegation due to its rigidity on power and authority within the organization (www.referenceforbusiness.com). Hierarchy is highly observed and a systematic flow of events is outlined. In other words, centralization of power and authority is encouraged and low ranking workers are strictly supervised. Organic structure This structure is one that embraces diversity and dynamism of individuals within an organization. In other words, it is flexible and change oriented. Changed organizational conditions constitute the said flexibility. Decentralization of power and authority is encouraged and the decision making process is shared among the working units in the organization (Jones, 2004). This structure does not restrict roles, duties and responsibilities. It encourages diversity of individuals and promotes creativity and innovativeness. In this regard, individuals within an organization can undertake different roles and perform different duties and responsibilities, within and without their area of specialty. Even the above identified advantageous traits, the structure has its shortcomings. Change is characteristic of developed new products and adopted new technologies. At some instances, new products and technologies are likely to fail or succeed. This structure does not account for such instances of failure. Complex organizational activities require time to time monitoring by the senior personnel. The structure’s motive to distribute powers and authority may bring about laxity in the monitoring of crucial operations that consequently determine the overall performance of the organization. Multidivisional structure Organizational growth, expansion and development are governed by an organization’s creativity, innovativeness and inventiveness. In this regard, the organization may diversity its product portfolio, thereby necessitating need for multiple divisions, each of which deals with a specific product line. Since all the operations of an organization are brought down to one management team, the multidivisional structure enhances division-based support functions prior to the entire organizational control (www.mindtools.com). This product improves product diversity through effective control of resources and coordination of operations best suited to every division. Its shortcomings however is that the integration of divisional support functions prior to the organizational objectives is challenging. On the same note, costs of operation are likely to increase due to change adoption, diversity and dynamism integration. Strategy, Structure, and Process in Organizations Strategies, structure and processes in organizations are meant to account for consumer needs and satisfaction. They purposely seek to allocate resources among the unlimited needs of people. The strategies are developed specifically for the achievement of desired goals and objectives. Such goals and objectives outline the operation that an organization engages in. The structure on the other hand, relates to power and authority of the controllers and workers in an organization. The structure is developed to account for optimal performance of the organization. On the same note, organizational processes account for the entire business aspects of the organization. The functionality and performance of the organization depends on the relationship between those variables and how responsible personnel over each variable undertake their duties, responsibilities and roles. Organizational Design and Decision-Making Processes Organizational needs are complex and diverse (Galbraith, 2002). A design that best fits these needs is hard to formulate and implement. What the management should do is try and make use of available resources and optimize the organization’s operations and performance in order to counter structural challenges. Different structures have their advantages and their shortcomings. Mangers should work out effective and efficient measures to maximize benefits of a structure and minimize emerging challenges from the structure(s) adopted by the organization. An effectively controlled structure improves the competitiveness of the organization. Conclusion Designing and redesigning of an organization is integral to the operations of an organization. This process is characterized by changes in one or more areas of the organization. A change in one area of the organization impacts on the entire performance of the organization. The need to embrace this change may necessitate redesigning of the organization, which is a complex activity and requires enough time. However, the rewards, benefits and advantages that come with the redesigning process cannot be refuted. References Create A High Performance Organizational Culture: www.leadership-and-motivation- training.com. Retrieved February 5, 2012. Galbraith. (2002). Designing Organizations: An Executive Guide to Strategy, Structure, and Process. San Francisco. Jones, G. (2004). Organizational Theory, Design, and Change: Designing Organizational Structure, Specialization and Coordination. 1st ed. New Jersey: Pearson-Prentice Hall. www.mindtools.com. Retrieved February 5, 2012. www.referenceforbusiness.com. Retrieved February 5, 2012. Read More