Organizational Design - Essay Example

Thus structure has a key role in the all-important human dimension of an organization. In recent time, due to failure of old organizational structures new structure though unconventional, coming up. The main criteria for design principal of organizations are speed, flexibility, integration and innovation. Recent time, organizations becoming complex in nature and built upon a foundation composed of purpose and core values but most of them change due to learning response to past weaknesses but nothing significant change in the organizational design has happened which could be termed as path breaking or truly innovating.

Another form of Organizational Structure i.e., "Citizen cell structure" (Law, 1998) has been developed in which each cell is self managed by group of 35 people that is able to develop in its own way rather like a micro culture which mirrors the overall culture of the company. The cells keep in touch and in harmony with each other and the overall philosophy of the company by sharing information. If the cell grows successfully than it splits and forms two new cells. Each new cell then is responsible for its new growth and development.

This type of structure of the organization supports its dynamic, interactive, team working approach, which is a perfect example of a complex adaptive system operating in the creative zone. (Lewin & Regine, 1991 p. 105). Complex forms of organization have the structure having following characteristics i.e. non-linear, non-hierarchical, holistic, self-organizing, flexible, diverse and networked. Lot of organizational design and structures have been adopted and tested around the world by the organizations nowadays and it has been changing accordingly all the time according to needs of the organizations.

Basically it has been understood by the organizations as well as those leading it that nature of the organizations and designs must be understood properly by them and the importance or organizational designs to play in improving performance, sustainability and satisfying human dimensions. Now scanning through the different theories and concepts of structure and designs for the organizations, in the present circumstances of Riordan we can analyze which design will be best suited to the organization.

In my opinion Riordan is complex organization and must have non-linear, non-hierarchical, holistic and flexible structure. Riordan must adopt "Citizen Cell Structure" because of its specialty and major emphasis on the teamwork and team building and diverse nature of operations. Riordan has already have three plants located in different locations and its R&D Department & H.O. located in same location. Its customer base is also diversified from Auto industry to Government department as well as manufacturing organizations and beverage organizations.

To cater the needs of different customers and to provide better services to them, the Riordan must form the team for different customers having complete responsibility as well as have flat structure with decentralized decision making. Then all the units must be networked and all the groups must maintain the main goals, values as well as ethos of the organization. The team must provide complete solutions to their customers and will be responsible for decisions. They must be innovative to provide innovative ideas, solutions to their