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The essence of the science of fundamentals of organization design
Organizational theory provides the theoretical underpinnings for organizational design. Organization theory describes and explains for our understanding how the world works; in complement, organization design builds on this to understand how the world could possibly work. Organization theory is a positive science to explain and understand the structure, behavior, and effectiveness of an organization—what is; organizational design is a normative science to recommend what might be designs for increased effectiveness and efficiency.
Organization design is a framework architecture for an organization according to which an organization runs its business. It structures the workforce and the management in the most efficient working method through which they can realize their company's mission statement.
A successful and comprehensive design process is defined by the holistic approach it envisions for the organizational improvement. To design such a framework that addresses all the vital areas of a company, the management will have to draw objectives that ensure the following:
Business Growth Model
Improved Efficiency and Profits
Outstanding Customer Service
Improved Process Management.
Improved Workforce Productivity
Decreasing Operational Expenses
Improved Employee Engagement
Based on this framework, work is deployed, teams are formed, responsibilities are delegated and core values are implemented. As a result of this, high-quality output is produced, which is then offered to the clients. Following this chain of operations for every project ensures trust, quality-assurance, time-efficiency and more business. However, unlike what many people assume, there is no particular super-design that fits all. In fact, companies have lost their fortunes and brought severe losses upon themselves in chasing after the elusive formula that will set everything in order for them. They kept implementing repeated changes in their organization’s structure, but didn’t end up improving their business.
Organization design is a decision-making process with numerous steps and many choices to make. A decision made early in the process will constrain choices made later, foreclose avenues of exploration, and eliminate alternatives, resulting in far-reaching impacts on the ultimate shape of the organization. Making sound decisions at these early, critical junctures requires a theoretical framework that gives credence to one choice over another. Yet many leaders and their teams still make organization design decisions based largely on their own individual experience and observation. A common framework for decision-making has a number of benefits. It:
Provides a common language for debating options and articulating why one choice is better than another in objective, impersonal terms
Forces design decisions to be based on longer-term business strategy rather than the more immediate demands of people and politics
Provides a clear rationale for the choices considered and an explanation of the implications of those choices as the basis for communication and successful change management
Allows decision makers to be able to evaluate outcomes, understand root causes, and make the right adjustments during implementation
Organizations exist to achieve a purpose. They do this through the collective efforts of the people who work in or with them. The process of organizing can be described as ‘the design, development and maintenance of a system of coordinated activities in which individuals and groups of people work cooperatively under leadership towards commonly understood and accepted goals’. The key word in that defi nition is ‘system’. Organizations are systems which, as affected by their environment, contain a set of practices or activities that fi t together and interact to achieve a purpose. The process of organizing may involve the grand design or redesign of the total structure, but most frequently it is concerned with the organization of particular functions and activities and the basis upon which the relationships between them are managed. Organizations are not static things. Changes are constantly taking place in the business itself, in the environment in which the business operates, and in the people who work in the business. There is no such thing as an ‘ideal’ organization. The most that can be done is to optimize the processes involved, remembering that whatever structure evolves it will be contingent on the circumstances of the organization. Organization Design 405 An important point to bear in mind is that organizations consist of people working more or less cooperatively together. Inevitably, and especially at managerial levels, the organization may have to be adjusted to fi t the particular strengths and attributes of the people available. The result may not conform to the ideal, but it is more likely to work than a structure that ignores the human element. It is always desirable to have an ideal structure in mind, but it is equally desirable to modify it to meet particular circumstances, as long as there is awareness of the potential problems that may arise. This may seem an obvious point, but it is frequently ignored by management consultants and others who adopt a doctrinaire approach to organization, often with disastrous results.
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