Key Concepts of Organizational Design
Organizations today are faced with unique challenges that threaten their survival as a result of continuous change in the environment forcing businesses to react to the demands of those changes. Businesses today are realizing that the once powerful centralized bureaucracies associated with steep hierarchies that once dominated the industries have long been outdated and replaced with a learning environment which enables employees to express themselves in order to bring new and creative ideas to the organization. As a result, the concept of organizational design is becoming an integral part of the structuring process in today’s organizations which will be detailed throughout this discussion. This analysis presents the reader with an explanation of the importance of various organizational design choices. The characteristics, advantages, and disadvantages of various organizational structures are offered to explain to the readers the process in its entirety. The relationship between strategy, structure, and process in organizations is assessed. The analysis of the relationship between organization design and decision-making processes is also given.
Importance of Organizational Design Choices
“Organizational design is the structure through which an organization allocates people and resources to tasks and establishes the authority relationships that control activities and seek to achieve goals” (Lean Advancement Initiative, 2005). In order for an organization to work at its maximum, energizing leadership coupled with a strong organizational structure and design is crucial (Leadership-and-Motivation-Training.com, 2007). The importance of organizational design choices is vital in that ignoring the signs usually results in org ...