The creation process and other formal relationship like reporting in an organization are considered to be the major part of the organizational design. Organizational design is actually based on two different types of phases, strategic phase (this is based on the structure of the company) and operational design (this is based on the roles and processes of the company) of the organization.
Sometime organization design and organization theory are mixed up, therefore it is important not to get both of them mixed up, why, because organization theory basically focuses on defining and understanding the functions that take place within the organization where as organizational design tilt more towards the tools and organizational frameworks that help the organization to improve its performance and to achieve its goals and objectives.
This paper is based on organizational design and that how problems can be solved with help of organization design. The paper shall be focusing on the two phases of organizational design, i.
e. the strategic phase and the operational design of the company. This will help the researcher by understanding that how organization design important to the company and how they will be able to solve problems with the use of it. Organizational Design Organizational design can be defined as a formal process which helps to bring the people, information and technology of the organization close together, i. e. it helps to integrate. Organizational design basically takes the form (i. e. is the roles and structure) of the organization and matches it to the aims and the goals (i.
e. mission and vision) of the company that it wants to achieve (Brickley, Smith, Zimmerman, & Willett, 2002). As it can be seen in the following figure; Figure 1: Organizational Design The above figure shows that how the three (i. e. people, information and technology) are incorporated with each other. Without any of these three elements an organization is incomplete and it would not be able to accomplish its goals and objectives, so that the organization is able to align the efforts of the employees along with increasing them with the organization.
And for organizations to achieve their goals and objectives it is very important that the work of the organization needs to be divided among its members. Therefore organization design and structure are rendered extremely important, why, because it is due to structure and design that effective performance of the major activities of the organization can be conducted and are also able to support and encourage the efforts of the employees as well.
It is with the help of organization structure that the framework of the organization is given and along with the pattern which is used by the management within the organization is shown. Once the design of the organization is recognized then the leaders of the company are able to increase the productivity along with improving the performance of the organization at all the hierarchal levels.
It is considered to be the managers’ or the leaders’ duty to understand the effects and the importance of an organization’s design, so that they are able to take into account the nature of the work activities, work structures and jobs along with the behaviors and the characteristics of the employees. One thing needs to be taken into account is that the job structure needs to be matched with an appropriate organizational design and managerial style. (Brickley, Smith, Zimmerman, & Willett, 2002)
Organizational Design Phases Organization design is based on two phases and they are; strategic phase which is concerned with structure of the company (which includes organizational chart, departmentalization, and mechanistic and organic structure), and operational design, which is concerned with the roles and processes of the company (this would include unity of command, responsibilities and line of authority, control span, centralization and decentralization and other factors etc. )