Reading Material - Organizational Design

WHAT IS ORGANIZATIONAL DESIGN?
A Process for improving the probability that an organization will be successful

By: Roy H. Autry, MBA, PhD
More specifically, Organization Design is a formal, guided process for integrating the
people, information and technology of an organization. It is used to match the form of
the organization as closely as possible to the purpose(s) the organization seeks to
achieve. Through the design process, organizations act to improve the probability that
the collective efforts of members will be successful.
Typically, design is approached as an internal change under the guidance of an external

facilitator. Managers and members work together to define the needs of the
organization then create systems to meet those needs most effectively. The facilitator
assures that a systematic process is followed and encourages creative thinking.
Hierarchical Systems
Western organizations have been heavily influenced by the command and control
structure of ancient military organizations, and by the turn of the century introduction of
Scientific Management. Most organizations today are designed as a bureaucracy in
which authority and responsibility are arranged in a hierarchy. Within the hierarchy
rules, policies, and procedures are uniformly and impersonally applied to exert control
over member behaviors. Activity is organized within sub-units (bureaus, or departments)
in which people perform specialized functions such as manufacturing, sales, or
accounting. People who perform similar tasks are clustered together.
The same basic organizational form is assumed to be appropriate for any organization,
be it a government, school, business, church, or fraternity. It is familiar, predictable, and
rational. It is what comes immediately to mind when we discover that ...we really have to
get organized!
As familiar and rational as the functional hierarchy may be, there are distinct
disadvantages to blindly applying the same form of organization to all purposeful
groups. To understand the problem, begin by observing that different groups wish to
achieve different outcomes. Second, observe that different groups have different
members, and that each group possesses a different culture. These differences in
desired outcomes, and in people, should alert us to the danger of assuming there
is any single best way of organizing. To be complete, however, also observe that
different groups will likely choose different methodsthrough which they will achieve their
purpose. Service groups will choose different methods than manufacturing groups, and
both will choose different methods than groups whose purpose is primarily social.One
structure cannot possibly fit all.
Organizing on Purpose
The purpose for which a group exists should be the foundation for everything its
members do — including the choice of an appropriate way to organize. The idea is to
create a way of organizing that best suits the purpose to be accomplished, regardless of
the way in which other, dissimilar groups are organized.
Only when there are close similarities in desired outcomes, culture, and methods should
the basic form of one organization be applied to another. And even then, only with
careful fine tuning. The danger is that the patterns of activity that help one group to be
successful may be dysfunctional for another group, and actually inhibit group
effectiveness. To optimize effectiveness, the form of organization must be matched to
the purpose it seeks to achieve.
The Design Process
Organization design begins with the creation of a strategy — a set of decision

guidelines by which members will choose appropriate actions. The strategy is derived
from clear, concise statements of purpose, and vision, and from the organization’s basic
philosophy. Strategy unifies the intent of the organization and focuses members toward
actions designed to accomplish desired outcomes. The strategy encourages actions
that support the purpose and discourages those that do not.
Creating a strategy is planning, not organizing. To organize we must connect people

with each other in meaningful and purposeful ways. Further, we must connect people
with the information and technology necessary for them to be successful.
Organization structure defines the formal relationships among people and specifies both
their roles and their responsibilities. Administrative systems govern the organization
through guidelines, procedures and policies. Information and technology define
the process(es) through which members achieve outcomes. Each element must support
each of the others and together they must support the organization’s purpose.
Exercising Choice
Organizations are an invention of man. They are contrived social systems through
which groups seek to exert influence or achieve a stated purpose. People choose to
organize when they recognize that by acting alone they are limited in their ability to
achieve. We sense that by acting in concert we may overcome our individual limitations.
When we organize we seek to direct, or pattern, the activities of a group of people

toward a common outcome. How this pattern is designed and implemented greatly
influences effectiveness. Patterns of activity that are complementary
and interdependent are more likely to result in the achievement of intended outcomes.
In contrast, activity patterns that are unrelated and independent are more likely to
produce unpredictable, and often unintended results.
The process of organization design matches people, information, and technology to the
purpose, vision, and strategy of the organization. Structure is designed to enhance
communication and information flow among people. Systems are designed to
encourage individual responsibility and decision making. Technology is used to
enhance human capabilities to accomplish meaningful work. The end product is an
integrated system of people and resources, tailored to the specific direction of the
organization.
Source: http://www.inovus.com/organiza.htm

Reading Material - Organizational Design

Uploaded by

Copyright:

Available Formats

Reading Material - Organizational Design

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Reading Material - Organizational Design

Uploaded by

Copyright:

Available Formats

WHAT IS ORGANIZATIONAL DESIGN?

A Process for improving the probability that an organization will be successful

Typically, design is approached as an internal change under the guidance of an external

The Design Process

Organization design begins with the creation of a strategy — a set of decision

Creating a strategy is planning, not organizing. To organize we must connect people

When we organize we seek to direct, or pattern, the activities of a group of people

You might also like