ORGANISATONAL

STRUCUTRE AND
ORGANISATIONAL
DESIGN
What is organizational structure?
Organizational structure describes the roles and responsibilities in a organization's hierarchy. It helps define the following details:
Job descriptions
Role categorization into teams or departments
Who makes departmental decisions
Who each role reports to
The organizational structure can help a business stay organized and clearly define roles. With a properly built organizational structure, managers can delegate work to roles that are fully trained for the task, which can help promote clarity, organization, productivity and accountability

What is organizational design?

Organizational design is the diagnostic process of improving a company's procedures so they operate efficiently. This includes improving:
Organizational structure
Workflow
Mechanical systems
Procedures
It also helps ensure some inherent business values are being focused on with the current company structure, including:
 Meeting work goals and deadlines
Ensuring all work meets company goals
Improvement of customer service
Ensuring accountability
Conflict resolution
Delegation of decision-making positions

What is the difference between

organizational structure and design?

The difference between organizational structure and design is the representation it has in an
organization. Organizational structure is a static representation of a business. Upper
management can design, structure and edit this plan and change each role's relationship to
each other. It can provide easy visualization and understanding of how the business
functions.Organizational design is a changing representation of a business. It defines the
procedures that restructure and improve an organization. Customer wants, factors in the
market, the economy and the surrounding business environment can all change and impact a
business, which is why upper management uses organizational design to react to those changes
appropriately. Organizational design is an ongoing effort to change a business when factors that
impact it change.
6 Oraganisational
Structure To Consider
1. Centralized
A centralised organisation is a hierarchical structure for making
decisions in which the upper management implements all processes
and decisions. Junior-level managers and staff almost never make
decisions without executive permission. All decisions, including those
concerning everyday operations, are made by a company's higher
management or owners in a centralised structure.

2. Decentralized
Decentralized organizational structures may allow for more flexibility
within the hierarchy, giving more decision-making power to every
employee and department. Most departments in a decentralized
organizational structure have equal autonomy and impact on a business'
decisions, allowing for fast and flexible strategies in changing business
climates.

3. Divisional
A divisional structure is a system of organization where the employees
are segmented into semi-autonomous units known as divisions. It is
implemented to organize a company's operations into separate divisions
or business units, each with its autonomous management.
4. Functional

A functional organizational structure is a common type of business

structure that organizes a company into different departments based on
areas of expertise, grouping employees by specialty, skill or related
roles. It’s based on levels of hierarchy that include different
departments, under the direction of designated leaders.

5. Flatarchy

A flatarchy can act as an opposite to the traditional hierarchy, placing all

members into smaller working teams and giving each team more
decision-making power. In a flatarchy, each team uses their
independence to make their own decisions and set their own goals
toward the company mission. Flatarchies are cost-efficient organizational
structures and promote quick decision-making in the company.

6. Matrix

A matrix organization is a work structure where team members report to

multiple leaders. In a matrix organization, team members (whether
remote or in-house) report to a project manager as well as their
department head. This management structure can help your company
create new products and services without realigning teams.
 5 elements of organizational design
to consider

• You can use organizational design to evaluate every aspect of

your business with goals to improve overall business
functionality. When considering organizational design for your
business, there are five elements of your business to evaluate,
including:
 1. Strategies

Strategy in business organizational design distinguishes how your business will

complete business goals. It defines a company's:
Mission
Products
Market group
Objectives
Selling propositions

2. Structure

Structure defines how you organize each role in an organization. This includes what
departments or teams classify them, and what objectives each serves. It can help
organize the following parts of your structure:
Power distribution into centralized or decentralized departments
General organization focus such as division, product, function etc.
 3. Processes

Processes can be anything from your budget allocation to your documentation process. Examples
of processes in business include:
Standardized procedures
Evaluation processes

4. Motivations

Motivations keep staff and customers alike interested in your business' well-being and its
products. Some aspects that organizational design may change include:
Rewards for employees: Promotions, commission pay and bonuses
Rewards for customers: Free trials, membership bonuses and deal offers

5. Recruitment

Recruitment looks at the processes involved with hiring, training and recruiting employees for
your business. Organizational design can change any of the following aspects:
Hiring requirements
Employee training details
Campaign strategies
Importance of organizational structure and design.
"The importance of organizational structure and design." Organizational structures are important because they help businesses implement efficient decision-making processes, You can make
better decisions faster by assigning specialized roles to lower-level employees.
1. Identifying the problem.
2. Researching it in-depth.
3. Ideating possible solutions.
4. Evaluating and selecting a promising solution.
5. Creating a prototype.
6. Testing and troubleshooting.
TO IMPLEMENT AN ORGANIZATIONAL STRUCTURE THAT ALIGNS WITH YOUR BUSINESS GOALS .
1.Assess your business needs: ...
2. Determine leadership roles: ...
3. Identify functional areas: ...
4. Clarify roles and responsibilities: ...
5. Choose an organizational structure: ...
6. Establish reporting relationships: ...
7.Allocate resources: ...
8. Plan for growth and flexibility: