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Understanding Organizational Design

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17 views19 pages

Understanding Organizational Design

Uploaded by

egrtacneng
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Understanding

Organizational Design
Introduction to Organizational Design
• Organizational Design: The process of structuring and aligning an
organization's structure, culture, and processes to achieve its strategic
objectives.

• A graphic representation of org des is org chart


Key Components of Organizational Design

•Structure: The formal arrangement of roles, responsibilities, and reporting relationships within an organization.
•Culture: The shared values, beliefs, and behaviors that define the organization's identity and guide employee actions.
•Processes: The standardized workflows and procedures for executing tasks and achieving objectives.
Organizational Structure
• Organizational structure determines how activities are coordinated,
controlled, and divided within an organization to achieve its goals.

• Types of Structures:
• Functional Structure: Organized by functions or departments (e.g., Marketing,
Finance).
• Divisional Structure: Organized by products, markets, or geographical regions.
• Matrix Structure: Combines functional and divisional structures to balance
specialization and coordination.
• Network Structure: Emphasizes collaboration with external partners and
outsourcing.
Functional Structure
• In a functional structure, employees are grouped based on their
specialized functions or roles.
• Pros: Clear specialization, efficient resource allocation.
• Cons: Limited cross-functional collaboration, potential for silos.
• Examples: Traditional corporations like Coca-Cola, IB

• Put pics*
Divisional Structure
• Explanation: In a divisional structure, the organization is divided into
self-contained units based on products, markets, or regions.

• Pros and Cons:


• Pros: Adaptability to diverse markets, customer focus.
• Cons: Duplication of resources, potential for competition among divisions.
divisional
• Product-based organizations like Procter & Gamble, GE.
Matrix Structure
• Explanation: A matrix structure combines aspects of functional and
divisional structures, allowing employees to report to multiple
managers.
• Pros and Cons:
• Pros: Flexibility, enhanced coordination across functions.
• Cons: Complexity, potential for power struggles.
• Examples: Project-based companies like Boeing, Accenture
Network Structure
• A network structure emphasizes collaboration with external partners
and outsourcing non-core activities.
• Pros and Cons:
• Pros: Agility, access to specialized skills.
• Cons: Dependence on external partners, potential loss of control.
• Virtual organizations like Apple, Airbnb.
Organizational Culture
• Definition and Importance: Organizational culture represents the
shared values, beliefs, and behaviors that shape employee attitudes
and actions.
• Types of Cultures: Clan (collaborative), Adhocracy (innovative),
Market (competitive), Hierarchy (structured).
Assessing and Shaping Organizational
Culture

•Methods for Assessment: Surveys, interviews, observations.


•Strategies for Shaping Culture: Leadership role modeling, communication, rewards and recognition.
Organizational Processes

•Definition and Significance: Organizational processes are standardized


workflows and procedures for executing tasks and achieving objectives.
•Examples: Decision-making processes, communication protocols,
innovation frameworks.
Improving Organizational Processes

• Continuous Improvement Strategies: Lean, Six Sigma methodologies


to identify and eliminate inefficiencies.
• Technology Integration: Automation, Enterprise Resource Planning
(ERP) systems to streamline processes and enhance productivity.
Aligning Structure, Culture, and Processes

•Importance of Alignment: Ensuring consistency and synergy between organizational structure, culture, and processes is crucial for driving performance and achieving
strategic goals.
•Strategies for Ensuring Alignment: Clear communication, employee involvement, leadership support, and ongoing evaluation and adjustment.
Conclu
• Summary of Key Points: Organizational design encompasses structure,
culture, and processes, and plays a critical role in driving
organizational performance and success.
• Importance of Organizational Design for Success: In a dynamic
business environment, organizations must continuously adapt their
design to remain competitive and meet evolving market demands.
• Future Considerations and Trends: Embracing digital transformation,
fostering diversity and inclusion, and promoting agility and innovation
will be key focus areas for future organizational design efforts.
• https://www.slideshare.net/89ajpaul/organizational-design-anf-
structure

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