Organizational design is a process that is 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 in most cases serves as a model for what the organization has set out 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 consensus on what it implies. Generally, it implies the processes that go into the restructuring or redefinition of an organization in order to give a defined structure that encompasses the roles of the organization. For some organizations, processes involve aligning the merits and talents of staff with the structure and process of the organization.
What are the benefits of organizational designs?
Where there are poor or no organizational designs, there are numerous contractions. This is the first thing proper design tackles. It addresses the roles of people on a team, the role of each person, and a proper description of their duties.
It gives space for ideas to be shared and in the process speeds up the decision-making process. It gives managers less stress and helps them avoid unnecessary complexity. It helps to detail problems that would have been easily overlooked and points out 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 peculiarity. Traditional design also encompasses dividing structures, functional functions, and simple structures. On the other hand, contemporary designs include more complexity such as organizational learning, borderless 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, scope 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 layout will work best. Even for a sole proprietor, it is still necessary to have a structured layout. Often times, the purposes for which a company, team, or organization exists serve as the pivot for design.