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Success and failure in organization design
- 1. SUCCESS AND FAILURE IN ORGANIZATION DESIGN DEEPAK S RA1952001020059
- 2. Organization Design Organization Design is a process for shaping the way organizations are structured and run to achieve it’s goals. It involves many different aspects of life at work, including team formations, shift patterns, lines of reporting, decision-making procedures, communication channels, and more. The six basic elements of organizational structure are: departmentalization, chain of command, span of control, centralization or decentralization, work specialization and the degree of formalisation.
- 3. Potential success elements of effective organisation design Increased efficiency. Faster and more effective decision making. Improved quality of goods and services. Higher profits. Better customer relations. Safer working conditions. A happier, healthier and more motivated workforce. Greater preparedness for future challenges.
- 4. Failure elements of inappropriate organisation design Ineffective problem solving. Wasted time. Lack of coordination between different parts of the business. Inconsistent quality of work. Failures of legal compliance. Reputational damage. Low morale, leading to high staff turnover. Below-target business-level results.
- 5. Framing right design for the organisation: Hierarchical/Organic Characteristic Hierarchical structure Organic structure Complexity High – with an emphasis on horizontal separation into functions, and divisions. Usually lower – less differentiation and functional separation. Formality High – lots of well-defined lines of control and responsibility. Lower – no real hierarchy, and less formal division of responsibilities. Participation Low – employees lower down the organization have little involvement in decision making. Higher – lower-level employees have more influence on decision makers. Communication Downward – information starts at the top and trickles down to employees. Lateral, upward and downward – information flows through the organization with fewer barriers.
- 6. 10 Principles of Organization Design 1. Declare amnesty for the past (Identify the key difference that design would make) 2. Design with “DNA.” (Work on each block of organisation) 3. Fix the structure last, not first. 4. Make the most of top talent. 5. Focus on what you can control. 6. Promote accountability. 7. Benchmark sparingly, if at all. 8. Let the “lines and boxes” fit your company’s purpose. 9. Accentuate the informal. 10. Build on your strengths.
- 7. THANK YOU