Organizational design is a step-by-step process which promotes healthy aspects of workflow, procedures, culture, structures, and systems and realigns them to fit current business realities and goals. It then provides a framework to develop plans to implement the new changes. The process focuses on improving both the technical and people side of the business by aligning the structure of an organization with its objectives with the ultimate goal of improving efficiency, effectiveness, performance and enhancing its culture.
Some of the work in organizational design includes the arrangement of work tasks based on the interaction of people, technology, and the tasks to be performed in the context of the organization’s mission, goals, and strategic plan. Activities such as human resource planning, job and work analysis, organizational restructuring, job design, team building, are key activities involved in this area and involves many different aspects of work, including team formation, lines of reporting, decision-making procedures, communication channels, and more. All of which are essential to organizational success and efficiency
It is a deliberate process of configuring structures, processes, reward systems, and people practices creating an organization capable of effectively achieving the strategic goals of an organization. The organization is not an end in itself; it is simply a means for accomplishing the goals of the organization. A well-designed organization helps everyone do their job effectively. A poorly designed organization creates barriers and frustrations for people both inside and outside the organization.
Poor organizational design and structure results in a lack of co-ordination among functions/departments, failure to share ideas, slow decision-making, and other problems which brings managers unnecessary complexity, stress, and conflict. Often those at the top of an organization are unaware of these problems or worse, pass them off as challenges to overcome or opportunities to develop.
Work in this area can be triggered by the need to improve service, productivity, performance, product delivery, or other need.
- Understanding the need for change and the environment
- Understanding the business processes, workflows, roles and responsibilities, volumes of work, organizational activities, and resources
- Designing and testing new models or structures
- Planning and managing the transition from the old structure to the new and
- Implementing and monitoring the change
It is the process of aligning the structure of an organization with its objectives with the ultimate goal of improving efficiency, effectiveness, performance and enhancing its culture.