ORGANIZATION DESIGN

1. M. KARTHIK RAJA
RA1952001020081

2.  It 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.

3. The design process consists of the following
steps.
 Charter the design process
 Assess the current state of the business
 Design the new organization

4.  You might have heard about one organisation taking over another, a
company declaring bankruptcy or a merger of two organisations. Nokia
was one of the most popular companies in the world before it was taken
over by Microsoft. Ali Baba was once a sole enterprise that turned out to
be the most popular online company in China and is recognised globally.
 But how these strategic changes occur? What happens to an
organisation that downturns its progress and sometimes force it to go into
liquidation while at the same time turning other to be a blue chip? This is
what we call the role of strategic direction in organisational settings.
However, this strategic direction is a combination of various organisational
goals set by its top management which should be executed at right place
and at the right time

5.  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. There are certain key areas
which can assist in setting a new strategic direction for an organisation
including production, staff, customers, systems, premises, quality and
marketing. These areas should be divided into different goals taking a
SMART approach into Account; S – specific, M – measureable, A –
achievable, R – realistic, T – time based (Cross & Lynch, 1988).

6.  Once top management plans a new strategy, a careful analysis of
organisational internal strengths and weaknesses with external
opportunities and threats is performed. It is important to perform the
analysis in accordance with organisational design – learning organisation
or efficiency orientated organisation.
 The rationale behind putting focus on organisational design is that all
policies, procedures, internal and external environmental needs are
interlinked. A change in one may upset the entire setting for others. Further,
the choices top management make in setting a new strategy, underlying
goals and organisational design ultimately determines organisational
effectiveness

7.  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. 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
 Improved efficiency and cycle time
 A culture of committed and engaged employees
 A clear strategy for managing and growing your business

8.  Lack of knowledge and focus on the
customer
 Silo mentality and turf battles
 Lack of ownership (“It’s not my job”)
 Cover up and blame rather than
identifying and solving problems
 Delays in decision-making

9.  People don’t have information or authority to solve
problems when and where they occur
 Management, rather than the front line, is responsible
for solving problems when things go wrong
 It takes a long time to get something done
 Systems are ill-defined or reinforce wrong behaviors
 Mistrust between workers and management