Elements of organizational design - Blog 8

 

Elements of organizational design

Figure 1 - Organizational Design (Source: Good et al., 2019)

Organizational designing is a process and step by step activity which can be undertaken in covering many aspects such as work designing, structure designing, procedures and system designing and managing the achievement of the organizational objectives and the aims (Good et al., 2019). Along with these applications, it is important in the management of best practices to have the successful outcome in the organizations (Dyduch, 2019).

Figure 2 - Element in organizational Design (Source: Lemus-Aguilar et al, 2019)

There are two approaches in the organizational design as well and these are highly available and used in the identification of the successful application in the organizational design activities. These two approaches are Mechanical system design and Natural system designing.

Elements in the organizational designing can be recorded as important fact which needed to be considered in managing the best practices. Here, 6 elements can be identified and these are as follows (Lemus-Aguilar et al, 2019).

      Work Specialization

      Departmentalization

      Chain of Command

      Span of Control

      Centralization Vs Decentralization

      Formalization

Work specialization is referring to the division of the works for several people as per the specialty and the skills of each employee. This is giving the chance for the employees to provide the best for each work which they are responsible for.

Departmentalization is the grouping of the activities in the different departments. This is making the clearance in the activities to face the successful identifications in the departments and it gives the clarity in managing the successful work applications. This is creating the specialists and work is more defined (Situmorang et al., 2020).

Figure 2 - Operational Design Principle (Source: Kumareswaran, 2018) 

Chain of command is referring to the official hierarchy of the power and authority in the organization which is resulting the ordering and following actions. The reporting of the work and getting advices are depending on the chain of command (Kumareswaran 2018). Span of control is referring to the number of subordinates under one person. It needed to be in the manageable range and it is resulting in better acceleration in the needed applications to manage the subordinated in a better method. Centralization and decentralization also important as decentralization is effective to make the collaboration of the employees in each task in the organization (Situmorang et al., 2020).

Formalization is referring to the roles and the actions in the organization which is different from smaller and larger companies. Along with this fact, it is very important to have better identification in the organizational design elements to gain maximum success in the future actions.  

Conclusion

Organizational design is critical fact which is resulting in all the process flows in the organization and thus the need of the consideration in this fact is important. Along with this, there are six main elements in organizational design and these are Work Specialization, Departmentalization, Chain of Command, Span of Control, Centralization Vs Decentralization and Formalization. Understanding of each sector and each level is very important to have better actions and outcomes in the organizations. Accordingly, organizational design is needed to have higher concerns in the management.

References

Dyduch, W., 2019. Organizational design supporting innovativeness, s.l.: Przegląd Organizacji, 6, pp.16-22.

Good, M., Knockaert, M., Soppe, B. & Wright, M., 2019. The technology transfer ecosystem in academia, s.l.: An organizational design perspective. Technovation, 82, pp.35-50.

Kumareswaran, S., 2018. A case study of strategic organisational failures at a glove manufacturing company in Sri Lanka, s.l.: (Doctoral dissertation, University of Wolverhampton).

Lemus-Aguilar, I., Morales-Alonso, G., Ramirez-Portilla, A. & Hidalgo, A., 2019. Sustainable business models through the lens of organizational design: A systematic literature review, s.l.: Sustainability, 11(19), p.5379.

Situmorang, O., Mukhtar, M. & Yasin, M., 2020. The Effect Organizational Structure and Work Motivation On Vendor’s Employee performance at Automotive Distributor in Indonesia, s.l.: Journal of Business and Behavioural Entrepreneurship, 4(2), pp.84-93.