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Success and failures in organization design
Ra.ram naresh
Ra1952001020015
Mba
I
a
Organisation 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 hallmark of the design process is a comprehensive
and holistic approach to organizational improvement that
touches all aspects of organizational life, so you can
achieve.
• Excellent customer service
• Increased profitability
• Reduced operating costs
SUCCESS OF ORGANISATION DESIGN
• BUILD ON YOUR STRENTHS:
As Socrates, father of Western philosophy and
arguably the original disruptor, said, “Know thyself.” Go
ahead and acknowledge upfront that retooling your
organization is a tough rock to tackle. Then, identify who
you are. Pinpoint the unique role that your company
holds against the competition. Define where these
strengths will take you in the new world order.
• GO BEYOND LINES AND BOXES
Thinking beyond the org chart gives you the chance
to move decision making throughout the company so
that teams can be empowered to think AND act. This is
crucial for nimble teams and even more crucial for
• KNOW YOUR ROLES
. The best time to get your org design right is before
you grow your team. That’s right – expanding your team
should happen after you’ve clearly defined the impact
you need from new roles. But this is a challenge; many
organizations lack definition around technical roles
• 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.
FACTORS TO CONSIDER IN ORGANISQATION DESIGN
• Organizational design is dictated by a variety of factors,
including the size of the company, the diversity of the
organization ‘s operations, and the environment in which
it operates.
• According to several theories, considerations of the
external environment are a key aspect of organizational
design. These considerations include how organizations
cope with conditions of uncertainty, procure external
resources, and compete with other organizations.
• A company in a highly uncertain environment must
prioritize adaptability over a more rigid and functional
strategy. In contrast, a company in a mature market with
limited variability and uncertainty should pursue more
structure.
• A company with a low-cost strategy relative to its
competition may benefit from a more simplistic and fixed
FAILURES IN ORGANISATION DESIGN
• Notknowingwhatyouaretryingto 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, or downsizing? Are you trying to reduce
costs and improve efficiencies? Are you struggling with performance
issues? Are there too many direct reports,
• Structuringanorganizationforspecificpersonnel
. 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. As a result, there is a risk
that the preferences of the individual will become a priority during
organization design rather than the objectives and requirements of
the business. It is incredibly important to separate the organization
design component from the actual selection of staff.
• Causing moredisruption than needed
ScottMadden sometimes encounters clients who view
reorganization as an opportunity to “clean house.” Although 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.
• Making decisions and/or havingsidebar agreements outside of the agreed-upon process
A sidebar or supplemental agreement that compromises the
documented, agreed-upon, communicated process threatens project
success. These actions can open the door to additional exceptions
to the organization design process and can result in an overall lack
of trust in the organization’s leadership going forward. For example,
management has set forth a process of evaluating and selecting for
all reorganized positions.
Success and failures in organization design

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Success and failures in organization design

  • 1. Success and failures in organization design Ra.ram naresh Ra1952001020015 Mba I a
  • 2. Organisation 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 hallmark of the design process is a comprehensive and holistic approach to organizational improvement that touches all aspects of organizational life, so you can achieve. • Excellent customer service • Increased profitability • Reduced operating costs
  • 3. SUCCESS OF ORGANISATION DESIGN • BUILD ON YOUR STRENTHS: As Socrates, father of Western philosophy and arguably the original disruptor, said, “Know thyself.” Go ahead and acknowledge upfront that retooling your organization is a tough rock to tackle. Then, identify who you are. Pinpoint the unique role that your company holds against the competition. Define where these strengths will take you in the new world order. • GO BEYOND LINES AND BOXES Thinking beyond the org chart gives you the chance to move decision making throughout the company so that teams can be empowered to think AND act. This is crucial for nimble teams and even more crucial for
  • 4. • KNOW YOUR ROLES . The best time to get your org design right is before you grow your team. That’s right – expanding your team should happen after you’ve clearly defined the impact you need from new roles. But this is a challenge; many organizations lack definition around technical roles • 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.
  • 5. FACTORS TO CONSIDER IN ORGANISQATION DESIGN • Organizational design is dictated by a variety of factors, including the size of the company, the diversity of the organization ‘s operations, and the environment in which it operates. • According to several theories, considerations of the external environment are a key aspect of organizational design. These considerations include how organizations cope with conditions of uncertainty, procure external resources, and compete with other organizations. • A company in a highly uncertain environment must prioritize adaptability over a more rigid and functional strategy. In contrast, a company in a mature market with limited variability and uncertainty should pursue more structure. • A company with a low-cost strategy relative to its competition may benefit from a more simplistic and fixed
  • 6. FAILURES IN ORGANISATION DESIGN • Notknowingwhatyouaretryingto 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, or downsizing? Are you trying to reduce costs and improve efficiencies? Are you struggling with performance issues? Are there too many direct reports, • Structuringanorganizationforspecificpersonnel . 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. As a result, there is a risk that the preferences of the individual will become a priority during organization design rather than the objectives and requirements of the business. It is incredibly important to separate the organization design component from the actual selection of staff.
  • 7. • Causing moredisruption than needed ScottMadden sometimes encounters clients who view reorganization as an opportunity to “clean house.” Although 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. • Making decisions and/or havingsidebar agreements outside of the agreed-upon process A sidebar or supplemental agreement that compromises the documented, agreed-upon, communicated process threatens project success. These actions can open the door to additional exceptions to the organization design process and can result in an overall lack of trust in the organization’s leadership going forward. For example, management has set forth a process of evaluating and selecting for all reorganized positions.