Key Concepts of Organizational Design
Creativity, Innovation, and Organizational Design
Key Concepts of Organizational Design An important part of organizational theory is organizational design. It is important to change management within the organization and shapes the organization’s culture, leading toward the achievement of reaching its goals. Organizational design becomes more complex as the company experiences growth. In this paper, I will provide some key concepts of organizational design and its importance, assessing the relationships between strategy, structure, and process in organizations and the relationship between organization design and decision-making processes are analyzed. In the next section, I will describe the five best design choices and the characteristics, advantages, and disadvantages of various organizational structures.
Importance of Organizational Design Choices One part of developing a strategy for a company is for an organizational design that fits the company’s purpose, culture, and processes. Organizational design has become a top priority because of increased competitive pressures and the use of information technology. Organizational design is important to its success, allowing an organization to plan for contingencies. For example, competitor that uses new technology in innovative ways. “Organizational design and change have important implications for a company’s ability to deal with contingencies, achieve a competitive advantage, effectively manage diversity, and increase its efficiency and ability to innovate,” (Jones, 2004, p. 12). Depending upon the design of the organizational structure that increases control over its environment, reflects how effective an organization will respond to certain factors in its environment. Because of the increasing pressure from consumers and competitors, it is becoming increasingly difficult to respond to the changing
References: Galbraith, J. R. (2002). Designing organizations: An executive guide to strategy, structure, and process. New and revised. NY: John Wiley and Sons, Inc. Interactive Business Communications. (2008). Why focusing on processes is the Holy Grail of business management . Retrieved from http://www.logisticsit.com/absolutenm/templates/article-critical.aspx?articleid=3611&zoneid=31 Jones, G. R. (2004). Organizational theory, design, and change: text and cases, Fourth Edition. New Jersey: Prentice-Hall.