ORGANISATION DESIGN assignment 2
- 1. SUCCESS AND FAILURE IN ORGANISATION DESIGN PRISCILLA PRIYADARSHINI S RA1952001020002 MBA 1 –A
- 2. WHAT IS ORGANISATION DESIGN Organization Design is a process for shaping the way organizations are structured and run. It involves many different aspects of life at work, including team formations, shift patterns, lines of reporting, decision-making procedures, communication channels, and more. Organizational design is a step-by-step methodology which identifies dysfunctional aspects of work flow, procedures, structures and systems, realigns them to fit current business realities/goals and then develops plans to implement the new changes. A clear strategy for managing and growing your business.
- 3. ELEMENTS IN ORGANISATION DESIGN Work Specialization: It describes to which the overall task of the organization is broken down and divided into smaller component parts Departmentalization: Once jobs have been specified through work specialization process, now they will be grouped in common tasks. There will be formed departments with common activities for effective coordination of effort. Chain of Command: Another element in an organizational design is defined an order which authority and power in an organization is used and delegated from top management to the lower management. It also ensures clear assignment of duties and responsibilities of every employee at every level.
- 4. Span of Control: The span of control in an organization is defined as the number of employees reporting directly to one supervisor/manager. It is said, the wider the span, the more efficient the organization. It determines the number of employees that a manager can effectively and efficiently manage. Centralization Vs Decentralization: Robbins and Coulter describe this very well, “If top managers make the organization’s key decisions with little or no input from below, then the organization is centralized.” Decentralization can be defined as “the spread of power away from the centre to local branches or governments.
- 5. SUCCESS IN ORGANISATION DESIGN 1. Build on your strengths Pinpoint the unique role that your company holds against the competition. Define where these strengths will take you in the new world order. 2. Go beyond lines and boxes Start by asking how the company’s unique strengths shape how people work and act. Balance that by asking where your company structure isn’t currently serving your business goals. 3. Know your roles First, measure your team's knowledge with skill assessments. Then, see how well a team member fits in a role by viewing the collection of skills needed for success.
- 6. Support a culture of learning Organizations that make professional development a high priority and provide a range of flexible training options mapped to business needs are the most successful at keeping their teams at peak performance and skill level. Rock your roles Equally important is the development of those hires – and all team members throughout their entire careers. Design roles that work the muscle of the people in them that goes for both leaders and technology experts alike.
- 7. FAILURE IN ORGANISATION DESIGN Not knowing what you are trying to achieve Before moving boxes and lines on an organization chart, it is important to know why you are doing the reorganization. Is it a result of a merger, acquisition. Structuring an organization for specific personnel It is not uncommon for key people within an organization to have tremendous influence due to their tenure, expertise, or importance to certain client relationships. Causing more disruption than needed It is true that the need for change usually provides a good opportunity to also address other inefficiencies or problem areas, leaders should be cautious about causing more disruption than necessary.
- 8. Skipping current state assessment Many organizations desire to jump directly to the organization design stage before conducting a detailed current state assessment (CSA) that includes current costs, volumes, and service levels of the organization. Breaking the circle of confidentiality It is incredibly important for participants involved in the redesign to keep project information inside the circle of confidentiality. Revealing too much too soon to those outside the “Circle of Trust” can threaten an organization’s level of engagement and overall productivity. Bypassing a formal change management and communications plan It is essential that a formal plan is developed to support the communication of the right information at the right point in the process. Details about the new organization, along with details of the selection process, should be communicated as they are finalized to all levels of the organization