SUCCESS AND FAILURE IN ORGANISATION DESIGN

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