This document discusses organizational success and failure. It notes that organizational failure has historically been less studied than success, despite being more common. Poor organizational design is identified as a major cause of failure, which can result in role confusion, lack of coordination, and failure to share ideas. Key factors that affect organizational design and the likelihood of failure include strategy, size, lifecycle stage, system/structural flaws, financial mismanagement, poor marketing, and failures of upper management such as bad decision making. Common reasons for organizational change to fail include inadequate planning, lack of leadership support, insufficient resources, and deficient change management skills. Sustaining change requires long-term investment and commitment.

1. SUCCESS AND FAILURE OF ORGANIZATIONAL DESIGN
MARIA ROBINSON
RA1952001020074

2. INTRODUCTION
• This special issue focuses on understanding the causes and management of
organizational failure. Over the years, far more organizations have failed than
have succeeded. Yet within business and management research, the study of
organizational failure has always been considered as secondary to organizational
success.
• Failure is commonly seen as being of less significance or, at best, as being
complementary to research on organizational success.“Failure is the most
fundamental feature of both biological systems and human social and economic
organisations,”

3. IMPORTANCE OF ORGANIZATIONAL DESIGN
• Most productivity and performance issues can be attributed to poor organizational
design.
• Poor organizational design often results in, among other things, confusion within
roles, a lack of coordination among functions, and failure to share ideas.
• A company can have a clear mission, talented people, and great leaders, and still not
perform well because of poor organizational design.
• To be effective, the overall organization design must be aligned with the business
strategy and the market environment in which the business operates. It must also
have the right business controls, the right flexibility, the right incentives, the right
people, and the right resources.

4. FACTOR AFFECTING ORGANIZATIONAL DESIGN
• Strategy: No matter what strategy your organization pursues, the structure must
support it to be successful.
• Size: The design must take into account the size of your organization. The larger an
organization grows, the more need there is for formal structure, defined work
assignments, and clear lines of authority.
• Organizational Life Cycle: Organizations life cycles include four stages, and each stage
connotes different structural needs.
• Birth, also known as Start-UpYouth, also known as Growth or Fast GrowthMid-Life,
also known as Slow Growth or No GrowthMaturity, also known as Decline

5. THE 4 MAIN REASONS FOR ORGANISATIONAL
FAILURE
• System and structural failures :
The systems you have in place to get the job done are flawed, at best, fatal at worst.
Systems failures in companies can have many causes, including a flawed
development process, too many defects causing rising costs and overload or
defects. Without the focus being on the causes of system failure, we run the risk of
poor application and failing complexities.

6. • Financial management failure :
The accounting department does not properly track expenses and departments
overspending, thus cutting into the organisation’s profit margin. Too many
businesses fail because of lack of financial viability or poor accounting procedures.
Customer and marketing failure : you have a poor marketing plan and you have
no idea who your niche client base really is. Today, it’s imperative that you know
who your market is and how viable it is for the short and long-term. Without that
certainty, you will make the wrong decisions regarding what to invest in, with often
dire results.

7. • Failure at the top
• Upper management isn’t making educated decisions, or members of upper
management are simply making very bad decisions despite the resources they
have available. Too many managers we work with are too operational in their
outlook. This causes businesses to not be able to see the wood for the trees,
cannot see beyond the fire-fighting duties of short-termism.

8. OBJECTIVES
• Poor Planning Sets Up Organizational Change for Failure.
• Inadequate Support from Leadership.
• Lack of Resources.
• priority Focus on Systems vs. ...Inadequate Change Leadership Skills.

9. CONCLUSION
• Lack of resources is one of the most common reasons why organizational change
fails in most organizations.
• Adoption and sustainment of change are long term investments.
• They don't occur just because an awesome solution was designed.
• This generally is a longer, and costlier endeavor than most change leaders realize.