Relationship between organizational structure and design

relationship between organizational structure and design

When the structure and design of an organizational work together, they create “ the formal system of task and reporting relationships that controls, coordinates. Organization design (OD) cares about fit and synergy among critical organizational elements such as mission, vision, strategy, structure, culture, leadership. This paper reports on the nature of control in 78 retail department store companies. It begins with the argument that control and structure have not been clearly.

Turning to the relationship between organizational structure and culture, we find that in manufacturing organizations, the employees address each other with honorifics rather than on an informal or first name basis as is the case with the services sector.

This creates a culture that is more formal and governed by rules and regulations covering all aspects of organizational culture. Indeed, it is very common for manufacturing organizations to have separate canteens and lunch areas for the workers and the engineers and the executives. One rarely finds a manufacturing organization that has workers and executives mingling with each other except for business purposes. Software and Technology Companies On the other hand, most software companies and financial services companies have codes of conduct that specify addressing each other on a first name basis in addition to having common public areas and dining halls where there is no difference between the software engineers and the managers or for that matter even senior management.

relationship between organizational structure and design

Of course, some multinationals have executive dining halls mainly because of the fact that external clients tend to visit for meetings and hence, the negotiations and discussions are carried out over lunch and dinner as well.

Industry Characteristics Drives Organizational Structure The reason for mentioning all these aspects of organizational culture is that each industry has different environmental characteristics and drivers of growth and hence, the organizations in them have their own sets of rules that determine the structure and design of job roles and responsibilities.

These are questions the newly structured companies are facing and why it can be so challenging to put a pen to paper to draw out the relationships.

Without distinct job descriptions or reporting structures, the lines in the traditional organizational structure are blurred.

Relationship Between Organizational Structure, Design & Change

Companies must rethink how these cross-functional network of teams can be mapped without building fences. There must be a balance between structure and agility. Hierarchical Organizations Hierarchical organizations are typical of larger organizations where there is a distinct chain of vertical command.

One or more people may at the higher management levels with their direct reports having dozens, even hundreds, of employees reporting to them.

There is generally a president or chief executive officer, followed by vice presidents, directors and managers of different functional areas. In a hierarchy, there is definite structure, ranks and even bureaucracy. Roles, responsibilities and management levels are clear with little to no cross-team collaboration. Hierarchies can have many layers of management or be flatter, with only a few layers of reporting. Organizational Charts Org charts present a visual representation of the organizational structure.

Relationship Between Organizational Structure, Design & Change

It is more difficult to depict cross-team collaboration, multiple and dynamic job roles, a lack of executive management, and other undefined models so prevalent in innovative, progressive companies.

Modern org chart software can bring order to the abstract. The software is purposely built to help organizations illustrate their structure, as well as communicate their design philosophy.

Technology enables impressive functionality that older org chart tools can not match, making the org chart a valuable asset and resource to any organization. A portion of the Deloitte report focuses on how to reimagine HR and the employee experience in the digital world. Afterall, HR often bears the brunt of managing the org chart and all of its constant updates.

relationship between organizational structure and design

By bringing together design thinking and mobile technology, companies can now develop their own custom apps to make work easier, more productive, and more enjoyable. In74 percent of executives said digital HR is a top priority. What is digital HR? By removing the barrier between HR systems and employees, companies can be more transparent and employees more self-sufficient. Even better, this sharing of information reflects the new design philosophy and organizational structure the company espouses.

HR no longer owns the information. Employees take ownership by performing many typically HR-driven functions themselves from their mobile device using these customized apps like org chart software.

Difference Between Organizational Structure & Design

This new digital capability helps employees form the teams they need to best execute a project because they have better access to the required resources. Finding specific skill sets no longer requires multiple emails and questions. These profiles are critical in finding the needed resources, but also in understanding the mix of talent under the corporate roof.

relationship between organizational structure and design

Resource gaps are easily identified and because the employee profiles include detailed experience, it is easy to determine if the skill set exists internally or headcount needs to be added. Leveraging the full potential of every employee not only helps the company achieve greater human capital ROI, but it establishes growth opportunities the younger workforce so desires. Cross-team collaboration means a variety of skills can be utilized instead of pigeonholing each employee into a specific job function.

Employees have room to grow, to work with new people, to learn from each other, and to be more fulfilled at work. Often when a company is small and starting up, it neglects both of these concepts while it figures out its identity, tasks, functions and all of the things organizational structure and design help put in order. While structure and design are two parts of the same whole, they have some differences that managers must understand in order to best shape their businesses.

Organizational Structure Organizational structure is the skeleton of an organization.

Difference Between Organizational Structure and Design | Bizfluent

It is an expression of who is performing the various functions and tasks of a company and how these people relate to one another. Organizational structure encompasses a list of the various job positions, titles and duties of a business, and the reporting structure or chain of command among them. Structure is a statement of the current state of affairs, not the ideals, intentions or betterment of an organizations. Organizational structure does not include "shoulds.

When a company's leaders develop plans for how their company should function or would perform better, they undertake the business of organizational design.