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Question Description
Discuss the ideas that are essential while designing an organization.
Organization Structure is a process in which a business arranges the activities, tasks and strategies in a manner that improves the effectiveness of the organization. A good organization will have transparency, timely closure of the information. The key factors that are important for designing the organization are-
1. Start with Strategy- It is important for every organization to have its own strategy. Strategy is to know what the business is planning to achieve in a certain period of time. The strategy includes considering various factors like market, competitors, future market. It is essential to consider cultural factors while preparing the strategy.
2. Capabilities required to win- The business executives are required to understand what kind of capabilities will be needed for the strategy to be implemented in a successful manner. The capabilities include the people and processes, because the more easier we make it to them the more will be success of the organization
3. Impacted individuals- It is a myth that the organization design is the responsibility of senior management. But research says that the design is more effective when all the people effected are involved. It is important to create a small team with layers and involve different people with experiences that can open the door to creative and effectiveness of the organization.
4. Plan for metrics and rewards- Along with the organization design, it is essential to plan for a metrics and rewards that can align with the organization strategy. There have been many examples where this has been one if the key points for the success of the organization.
5. Clear implantation plan- There should be clear implementation plan in place. The plan looks simple on piece of paper, but becomes more and more complicated when it comes to implementation. It is recommended to have a plan and a contingency plan in place.
By using these basic ideas in building and designing an organization, there are other factors also to be considered for achieving the business strategy.
References-
Stanford, N. (2007), Guide to Organization Design (The Economist). London: Profile Books
Mohrman, S. Cohen, S. G., Mohrman Jr., A. (1995), Designing Team-Based Organizations: New Forms for Knowledge Work. San Francisco: Jossey-Bass
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