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Importance of Organisational Design

Importance of Organisational Design

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13 views2 pages

Importance of Organisational Design

Importance of Organisational Design

Uploaded by

muriithicate2013
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Importance of Organizational Design

- Enhanced Efficiency: A well-designed organization improves workflow efficiency and productivity.

- Adaptability: It allows organizations to adapt to changes in the internal and external environment.

- Alignment: Ensures alignment between the organizational mission, goals, and strategies.

- Employee Engagement: Clear roles and responsibilities foster employee engagement and satisfaction.

Crafting an Effective Organizational Design

Step 1: Establish the Organizational Plan

Start by learning about the organization’s competitive strategy, goals, and mission. The design of the organizational
structure is based on this.

Step 2: Align HR Strategy

The organizational strategy and the HR strategy ought to work together. This entails matching the organization’s
overarching objectives with its HR rules, procedures, and initiatives.

Step 3: Establish Design Criteria

Based on the organizational strategy, define specific design criteria. These criteria serve as guidelines for creating the
organizational structure.

Step 4: Design the Structure


With the design criteria in mind, develop the organizational structure. This includes determining reporting relationships,
decision-making processes, and communication channels.

Step 5: Implement and Monitor

Implement the designed structure and continually monitor its effectiveness. Adjustments may be necessary to ensure
alignment with changing organizational needs.

Key Considerations in Organizational Design

- Flexibility: Design structures that can adapt to evolving business requirements.

- Clarity: Ensure clarity in roles, responsibilities, and reporting lines.

- Communication: Foster open communication channels to facilitate collaboration.

- Feedback Mechanisms: Set up feedback channels to collect information and make required modifications.

In strategic management, organizational architecture holds significant importance. Having aligned organizational
structures improves adaptability, involvement, and productivity, which helps companies succeed in the current competitive
environment.

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