The organizational design is a methodology that can identify step by step all dysfunctional aspects of various procedures, systems and structures in order to align them so that they adapt to reality and business objectives current. In this way, plans can be developed and new challenges implemented. This process can improve the technical and human part of the business.
It is a process, where managers create different strategies to take decisions and for the other members to put them into practice. It is a set of means that the company manages in order to classify the work and thus achieve a effective coordination of the same.
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In this way, it will be possible to carry out a good coordination that leads to the process of the objectives and thus define a stable relationship within the company. In addition, it allows managers to observe everything that happens both inside and outside the organization.
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In this article you will find:
Organizational design goal
The processes of this design type at first they revolved around the internal workings of a company. Currently the knowledge of the same has been evolving and capturing the attention of managers. That is why, its main objective is the following:
Respond to change
In order for a company to remain competitive, it has to be willing to adapt to changes related to competition, the global economy, technology and the needs of the consumer, in addition to the changes that occur during the evolutionary development of the organization and proactive initiatives.
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Integration of new elements
As companies evolve, grow, expand and respond to changes, new positions are increased and departments to be able to face various factors of the external environment or that have strategic needs new. These elements must be integrated into the general structure of the company so that it can be restructured.
Coordination of the components
When new work areas are created, the management train is in the duty of finding a way to link all departments in order to ensure coordination and collaboration between the same. They must work together to avoid differences or problems that make it difficult meet customer needs.
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Encourage flexibility
Those who are in charge of this design have to relate to the company, with all its chain of command, flexibility in decision making, to respond to the control of resources and focus the skills of workers. This objective differentiates the response to changes.
Organizational design dimensions
For most companies the procedure of this design leads to another that is much more effective and in this way the results are improved and the workers feel more committed to their job.
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Mostly, this design makes the approach to internal changes under the direction of an external command, which means that managers and all members they work as a team so that the needs of the company can be determined and in turn create different systems that meet those needs with efficiency.
Among the main dimensions are:
Formalization
It is the degree by which the company generates its own rules and procedures.
Hierarchy of authority
It is about the degree of vertical differentiation through the levels of management.
Standardization
It is the grade where job duties are performed routinely.
Centralization
It refers to the degree to which the decisions of the higher levels are made.
Specialization
It is based on the degree that defines the jobs.
Complexity
It is the degree of the different types of activities that are carried out in the company.
Organizational design elements
The success of the procedure of a design like this lies in the understanding of all the elements that make it up, as part of a mutual influence. Below are the fundamental elements of organizational design:
Strategy
The strategy is the fundamental guide of this design, since it allows to know with which product and in which market the company will be able to achieve its objectives in the future. It is important that a good approach, a perspective and a model for efficient development.
Processes
It is the set of activities that receive more than one input, to create a valuable product for the customer. For this, the job classification, the assignment of functions and the study of the causes and conditions that manage to transform the entries into effective results must be taken into account.
People
The distribution of positions is the most important element in the administration of individuals, since locating them in areas where they can demonstrate their skills, it is the way to achieve the proper functioning of human resources. Its design must allow the balance between the contribution, the remuneration and the skill of each person.
Technology
It is the tool that allows to transform the raw material in finished products and thus define the role of the company. In relation to the variables of structure and process analysis, look for a way to make correct and organized supplies.
It also allows the training of a suitable structure so that it can function effectively with the application of processes that facilitate coordination in the work of each of its components.
Importance of organizational design
The increase in global competition and the use of information technology growth advanced, have allowed this design to be a priority within the administration of companies current.
Today's managers are under pressure to find new ways, improve coordination and motivation of their workers in order to increase the value of the company.
That is why organizational design is of great importance as it involves the capabilities that a company has to be able to fight with contingencies, manage the diversity efficiently, achieve advantageous competencies and effectively increase capacity and efficiency in order to innovate with the acquisition of new goods and services.
