Organizational design is a process 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 serves in most cases as a model of what the organization has set itself to achieve. In some organization it is the template that covers the goals, 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 a consensus on what it implies. Generally, it involves the processes involved in restructuring or redefining an organization to give a defined structure that encompasses the roles of the organization. For some organizations, the processes imply aligning the merits and talents of the personnel with the structure and process of the organization.
What are the benefits of organizational designs?
Where there are poor or nonexistent organizational designs, there are numerous contractions. This is the first thing that has proper design directions. It addresses the roles of individuals in a team, the role of each person, and a proper job description.
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 avoid unnecessary complexities. It helps to detail issues that would have been easily overlooked and points out opportunities that should be explored.
Types of Organizational Designs
The types of organizational layouts available fall into two main categories. These categories are
- Traditional
- Contemporary
Each of these designs has its particularity. Traditional design also encompasses divisional structures, functional functions, and simple structures. On the other hand, contemporary designs include more complexity, such as organizational learning, organization without boundaries, team structure, project structure, and matrix structures.
Key elements in organizational designs
Regardless of the type of organizational design a company opts for; there are some key elements that cannot be overlooked. These elements include Work Specialization, Departmentalization, Chain of Command, Span 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 which type of design will work best. Even for a sole proprietor, it is still necessary to have a structured design. Many times, the purposes for which a business, team or organization exists serve as the axis for the design.