This document discusses organizational design and structure. It defines organizational design as a methodology that identifies dysfunctional aspects of a company and realigns them with business goals and strategies. There are two main types of organizational structures discussed: simple/flat structures with decentralized authority and matrix structures that combine functional and product-based departments. The role of strategic direction in organizational design is also examined, noting that goals and strategy influence design. Strategic change implementation depends on employee attitudes and structure, with matrix and positive attitudes most accepting and flat/negative the most resistant. Alignment of structure and strategic change is important for continuous organizational improvement.

1. BY:-
M.SUNIL KUMAR
RA1952001020025
1ST YR – MBA-A SEC

2. ORGANIZATIONAL DESIGN
 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.
 The process focuses on improving both the technical and people side of the business.
 For most companies, the design process leads to a more effective organization design,
significantly improved results (profitability, customer service, internal operations), and
employees who are empowered and committed to the business.

3. ORGANIZATIONAL LAYOUT

4. TYPES OF ORGANIZATIONALSTRUCTURE
1.SIMPLE OR FLAT STRUCTURE:
 A structure without any tight control and with high decentralized rules
and regulations is a Flat structure. Its strength lies in its simplicity and
flexibility.
 In such structures the flow of information is very fast and inexpensive. It
is easy to maintain and it specifies job accountability clearly.
2. MATRIX STRUCTURE:
 A structure that creates dual lines of authority and combines functional
and product departmentalization.
 It brings specialists together and provides easy access and sharing of
resources. It is highly rigid and contains tight controls.

5. THE ROLE OF STRATEGIC DIRECTION
IN ORGANISATIONAL DESIGN
 An organizational goal is a specific set-point which an organization attempts to achieve.
For better understanding we can interpret it as a target towards which organizational
efforts are directed.
 These goals are highly influenced by the nature of organisational strategy. In other
words, organisational strategy is implemented by segregating various goals grouped
together to be executed one after another.
 Top management decides and sets the goals and determine the direction it will take to
accomplish it.
 This process of setting new strategic direction for the organisation brings a lot of
opportunities and threats for the management to deal with – for which a careful SWOT
analysis is required.

6. IMPLEMENTING STRATEGIC CHANGE
To implement strategic change is not an easy task for both big business houses and
small organizations (Robbins2003)On the basis of the attitude of employees and
type of structure a table is prepared which helps in finding out the outcomes of
implementing strategic change
1.MATRIX AND NEGATIVE: In case of hierarchical structure where people are forced
to work in strict control, the implementation of strategic change is highly difficult
due to high resistance of employees.
2. MATRIX AND POSITIVE: Strategic change can be accepted only if people are self
motivated ad willing tolearn from such changes. Change may also be accepted in
case of threat to face unforeseen challenges.

7. 3. FLAT AND NEGATIVE: Due to lose control strategic change although is
implemented but typically accepted as employees may frustrate and resist changing.
4. FLAT AND POSITIVIE: Strategic change can be implemented and accepted very
easily as high levels of learning is involved in it.

8. CONCLUSION
 Organizations, in order to sustain for long, need to make continuous changes in their
existing strategies. This helps them in facing challenges of the market.
 To implement the strategic change effectively it is necessary that organizational structure
should be aligned with it. From the study it is revealed that strategic change brings about
change in organizational structure.
 It also affects employee attitude towards change. Human resource is the most important
factor for organizations. So in order to implement strategic change continuously its
alignment with organizational structure is a must.
 It facilitates continuous changes in organizational strategy and brings out various benefits
from it.