Designing organizational structure in strategic management

A strong foundation and a basic structure are critical to making a building strong. Although it is possible to redesign and restructure a building, if the base is weak, the whole structure of a building will be unstable. We can clearly see how important a foundation is. Moreover, foundation and design are inter-related to each other. As stated above, the organization structure is the system which describes the organizational hierarchy in terms of different functions, roles, responsibilities, supervision, etc.

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Content:

• Organizational Structure in Strategy Implementation
• Strategy through Organizational Design
• Organizational Design: The Must-Know Basics
• Redesign Your IT Organizational Structure
• Organization Design
• 7 types of organizational structures (+ org charts for implementation)
• Organizational Design and Structure; Definition, Elements, Types, Pros, Cons
• Types of Organizational Structures to Consider for Your Business
• How to Design an Organizational Structure

Organizational Structure in Strategy Implementation

Organization structure generally refers to the way in which a business or similar organization arranges its tasks, people and techniques.

A properly organized organizational structure will help provide transparency within the organization, ensuring the complete and timely disclosure of information. The main factors to consider when designing an organizational structure include clarity, understanding, decentralization, stability and adaptability. Maintaining clarity within an organization means that employees have a completely clear picture of all aspects of their jobs. There should be complete clarity in the reporting relationship as well as the sources of information used in the decision making process.

Workers at all levels need to understand the purpose, often referred to as the mission or vision of the organization, as well as its structure. Finally, there should be specific tools in place for measuring results so workers know where their efforts should be focused. Understanding is achieved when all workers know where they fit within the bigger picture of the organization as a whole.

It is vital that members of management take into consideration the daily actions of workers as well as the underlying organizational culture, which dictates both their actions and reactions. In a centralized organization, all discussions and decisions take place only among top-level managers, with no input from workers at lower levels. Centralization inhibits conversations among those who do the day-to-day work of the business. The decentralization of an organization is key in that it allows and encourages open conversation among workers at all levels, spurring a sharing of information that is not possible within a centralized organization.

The successful delegation of authority is an effective way of decentralizing decision making within an organization. A well-structured organization looks for changes in the environment and purposefully adapts to these changes.

At the same time, the organization must be capable of maintaining stability in unstable circumstances. This simultaneous stability and adaptability can be achieved through the connections which can only be formed between people through organizational routines. Amanda L. Webster has a Master of Science in business management and a Master of Arts in English with a concentration in professional writing.

She teaches a variety of business and communication courses within the Wisconsin Technical College System and works as a writer specializing in online business communications and social media marketing. Share It. Football field goal post image by ryasick from Fotolia. Three Stones image by styf from Fotolia. Jensen, William H.

Strategy through Organizational Design

An organizational structure defines how activities such as task allocation , coordination, and supervision are directed toward the achievement of organizational aims. Organizational structure affects organizational action and provides the foundation on which standard operating procedures and routines rest. It determines which individuals get to participate in which decision-making processes, and thus to what extent their views shape the organization's actions. Organizations are a variant of clustered entities.

Organizational Design: The Must-Know Basics

In simple terms, an organizational design can be defined as a structure that defines how work gets delegated in an organization. It can also be defined as a step-by-step approach to achieve different yet connected things such as:. But that's all theory - in the real world, there is no one-size-fits-all model we can label as the best design for an organization. It's all determined by the organization's strategy. Take, for example, a company that operates in a well-defined market. Customers know what they want and competitors have established businesses, too. In this case, a company would try to follow a low-cost leadership strategy with an eye for efficiency. Such a company's organizational design would have a centralized structure with tight controls. Another company operating in a newer market might opt for a more flexible design.

Redesign Your IT Organizational Structure

This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. Received November 3 rd , ; revised December 17 th , ; accepted January 18 th , Many of these factors are from the environment where traditional view commonly divided into internal and external factors. This paper presents the findings of a study to evaluate the influencing factors and impact on organizational structure of a sample of firms located in Hanoi, Vietnam.

Organization Design

Four types of structures are available to executives: 1 simple, 2 functional, 3 multidivisional, and 4 matrix Table 9. Like snowflakes, however, no two organizational structures are exactly alike. Once a structure is created, it constrains future strategic moves. While no two organizational structures are exactly alike, four general types of structures are available to executives: simple functional, multidivisional, and matrix. Many organizations start out with a simple structure. In this type of structure, an organizational chart is usually not needed.

7 types of organizational structures (+ org charts for implementation)

We think you have liked this presentation. If you wish to download it, please recommend it to your friends in any social system. Share buttons are a little bit lower. Thank you! Published by Raymond Mason Modified over 6 years ago. Traditional structures are more rigid. Contemporary and team-based structures are more flexible and assemble employees to respond quickly to changes. The first decision is to consider what kind of work needs to be done within the firm.

Organizational Design and Structure; Definition, Elements, Types, Pros, Cons

A well-designed organizational structure should be an integral part of your strategic planning. Done well, it can have significant impacts on company operations and the customer experience. No matter where your business is in terms of size, growth or level of establishment, you should either:. Your organizational structure is a blueprint for how you will realize the vision — day-by-day.

Types of Organizational Structures to Consider for Your Business

Why is organizational design and structure important to the success of an organization? Good organizational structure and design helps improve communication, increase productivity, and inspire innovation. It creates an environment where people can work effectively. Organizational structure defines how activities are directed and provides the foundation for operating procedures within an organization. Organizational Design sometimes referred to as organizational architecture provides the structure for business processes and the framework for an organization to deliver its core qualities.

How to Design an Organizational Structure

Members may download one copy of our sample forms and templates for your personal use within your organization. Neither members nor non-members may reproduce such samples in any other way e. Organizational structure aligns and relates parts of an organization, so it can achieve its maximum performance. The structure chosen affects an organization's success in carrying out its strategy and objectives. Leadership should understand the characteristics, benefits and limitations of various organizational structures to assist in this strategic alignment.

In this blog post we discuss and define the terms organizational structure, organizational design, and organizational development, and how they relate to each other. While partly overlapping, each of those terms stands for a unique perspective on organizing, in the sense of working together at scale in order to achieve a shared set of goals. I was recently discussing one of our Kits with a user and the following question came up: what, exactly, is the difference between organizational structure, organization design, and organization development? First, we use these terms to label and to describe our Kits and how they create value for managers and the people who work with them.