Name: Ragul Pandyan B Roll No: 1951016: Structures To Ensure That The Organization's Goals Can Be Realized

Name: Ragul pandyan B
Roll no: 1951016
ORGANIZATIONAL DESIGN
“Organizational design” involves the creation of roles, processes and

structures to ensure that the organization’s goals can be realized.
Some people associate organization design with the mechanical arrangement of

positions and reporting lines on the organization chart.
It is certainly true that organizational designers also need to define the vertical
structure, including reporting lines.
However, organization design is much more than “boxology”.
Organization design problems are often some of the hardest problems that leaders
face. Finding the right design often requires inventing a new solution to resolve a
dilemma. And decisions made with regard to formal structure, roles and processes
directly impact the jobs and careers of employees – and the ability of the firm to
realize its strategic objectives.
In an organization re-design process one may consider elements at different

levels:
 The overall organizational “architecture” (e.g., the corporate level, the role
of the headquarters versus business areas in a large firm, etc.)
 The design of business areas and business units within a larger firm
 The design of departments and other sub-units within a business unit
 The design of individual roles
The field of organization design sits at the intersection of strategy, operations, law
and HR.
1. An important driver for organization design is the organization’s strategy – but
the design of the organization may also to a great extent determine which strategies
we may be able to form in the first place.
2. We should, in general, attempt to align the organization with the work processes
– so there is a close link between operations and organization design.
3. The design of the organization is also influenced by laws, regulations, and

governance principles adopted by the industry sector.
4. Last but not least, organization design is fundamentally about people. People

inhabit the roles that are defined in the organization design process. People
participate in design processes and also influence designs in many direct and
indirect ways.
The Impact of Organization Design

An organization's design must be right for it to operate efficiently and effectively,
and its structures and systems need to be aligned with its core strategies.
There are many potential benefits to having a design that suits the business and its
people, and the environment in which it operates. For example:
 Increased efficiency.
 Faster and more effective decision making.
 Improved quality of goods and services.
 Higher profits.
 Better customer relations.
 Safer working conditions.
 A happier, healthier and more motivated workforce.
 Greater preparedness for future challenges.
However, if there are flaws in its design, an organization can suffer serious
problems, including:
 Ineffective problem solving.

 Wasted time.
 Lack of coordination between different parts of the business.
 Inconsistent quality of work.
 Failures of legal compliance.
 Reputational damage.
 Low morale, leading to high staff turnover.
 Below-target business-level results.
Even if a particular setup was successful in the past, that doesn't mean it will
remain so for ever – or even for long. As businesses develop, and as the world
around them changes, it's vital that they keep a close eye on the way they're
organized.
And when it's no longer fit for purpose, that's the time to put a new phase of
Organizational Design into action.
Hierarchical and Organic Organization Design

Organization Design is often divided into two distinct
styles: hierarchical and organic.
The table below shows some of the key features of hierarchical and organic
designs – examined in terms of complexity, formality, levels of participation, and
communication styles.
It's worth emphasizing that one isn't intrinsically better than the other.
Organizations need to choose a design that matches their strategies and goals, suits
the environment they're operating in, and is right for their people . It's also possible
to mix elements of both styles, or to emphasize one or the other at particular times,
or in specific areas.
Characteristic Hierarchical structure Organic structure
High – with an emphasis on

horizontal separation into Usually lower – less
functions, departments and differentiation and functional
Complexity divisions. separation.
High – lots of well-defined Lower – no real hierarchy,

lines of control and and less formal division of
Formality responsibility. responsibilities.
Low – employees lower
down the organization have Higher – lower-level
little involvement in employees have more
Participation decision making. influence on decision makers.
Lateral, upward and

downward – information
Downward – information flows through the
Communicatio starts at the top and trickles organization with fewer
n down to employees. barriers.

Name: Ragul Pandyan B Roll No: 1951016: Structures To Ensure That The Organization's Goals Can Be Realized

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Name: Ragul Pandyan B Roll No: 1951016: Structures To Ensure That The Organization's Goals Can Be Realized

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Name: Ragul pandyan B

Roll no: 1951016

“Organizational design” involves the creation of roles, processes and

Some people associate organization design with the mechanical arrangement of

However, organization design is much more than “boxology”.

In an organization re-design process one may consider elements at different

3. The design of the organization is also influenced by laws, regulations, and

4. Last but not least, organization design is fundamentally about people. People

The Impact of Organization Design

 Ineffective problem solving.

Hierarchical and Organic Organization Design

Characteristic Hierarchical structure Organic structure

High – with an emphasis on

High – lots of well-defined Lower – no real hierarchy,

Lateral, upward and

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