...Key Concepts of Organizational Design Marques Barnes MMPBL/550 2/3/11 Kenneth Hadzinski Key Concepts of Organizational Design Organizational design in comparison is similar to a blueprint to a construction worker. A blueprint to a construction worker includes the layout of a project, the materials needs, and instruction on how to build and where to build. Organizational design provides a blueprint for an organization just as a blueprint provides a guide for a construction worker. Organizational design provides a blueprint or process for integration the people, information and technology of an organization. Organizational design is extremely important to any organization. An organizational design must be able to function alongside the organization’s goals and strategy. Many business and organizations have changed their organizational design over the years to adjust to their respective industries and meet consumer needs. When companies go through restructuring and downsizing they are general altering the organizational design. Organizational design is important because it determines the specific roles, job functions, and job duties. The organizational design of a company represents its efforts to respond to changes, implement new ideas, ensure collaboration, and allow flexibility. Importance of Organizational Design Choices It is very difficult to choose an organizational design that meets the need of the organization. Every choice has a response or an action...
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...Key Concepts of Organizational Design If an organization is to remain effective as it changes and grows with its environment, managers must continuously evaluate the way their organizations are designed: for example, the way work is divided among people and departments, and the way it controls its human, financial, and physical resources. Organizational design involves difficult choices about how to control—that is, coordinate organizational tasks and motivate the people who perform them—to maximize an organization’s ability to create value (Jones, 2004). Maintaining that competitive edge in the snack food industry can be challenging. Snacks and goodies are considered one of America’s favorite past times. Best Snacks has held the number one or two positions for many years and now they are in jeopardy of losing that status. Best Snacks has been experiencing declining sales for the past few years and market share has decreased. They are now faced with the challenge of revamping their development and marketing strategies. They have not developed any new product or service innovations in the last five years. It is definitely time to get the creative juices flowing (BestSnacks Benchmarking Worksheet). Importance of Organizational Design Choices Nadler & Tushman suggests that the last remaining source of truly sustainable competitive advantage lies in what we've come to describe as “Organizational capabilities" the unique ways in which each organization structures its work and...
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...Organizational Design Tara M. Parker University of Phoenix Managing in Today's Health Care Organizations HCS/514 October 1, 2012 Steven Bonell, MBA, MHA Organizational Design My organization is not-for-profit, community based network comprised of nine facilities. We employ more than 16,000 employees, including physician affiliates. We are dedicated to serving the surrounding communities regardless of ability to pay. The organizational structure includes our volunteer board of directors and the president and chief executive officer. Each of the nine facilities has their own president and vice president as well as administrator, department managers, and team members. The hospitals are divided by specialty and then within each facility, there are divisions according to specialties. Within our functional structure, is a divisional structure. Any director or manager would have difficulty keeping track of all departments under her or his span of control; therefore, there is a director and a separate manager for each department under the director’s span of control. The director is ultimately responsible for the departments, yet each department functions with a certain amount of autonomy. Our president and board are responsible for the performance of the organization as a whole. The executive level team members within each division are responsible for implementing action plans consistent with the organizations’ mission and objectives. The first line managers are...
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...Organizational design refers to the way in which a company functions. Good organizational design aligns the company’s processes and management functions with its overall goals. Poor design can be most easily identified when a company utilizes traditional methods of organization rather than looking for innovative solutions. The most effective way to organize a company depends entirely upon the company’s specific needs, functions, and goals. When considering the best design, one must first define the purpose of the company. All other features of the company’s organizational methods should center around fulfilling this purpose. A company whose purpose is centered around helping others, for example, would need a very different design than a company that is technologically focused. If both companies were to utilize the same design principles, one or both would be operating well below their optimum potential. In addition to considering the purpose of the company, organizational design must also evaluate the skills and purposes of the individual employees. A creative company may thrive with a loose organizational system, ample opportunities for free brainstorming, and playful incentives. A company with more left-brained individuals may do better with a rigid, well-defined structure. Most situations will call for a unique blend of these methods. A company’s organizational design also serves to define the chain of command and division of labor within the group. It determines who...
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...Chapter 10 Organizational Structure and Design |ANNOTATED OUTLINE | | 1. INTRODUCTION Designing organizational structure involves the process of organizing (the second management function) and plays an important role in the success of a company. 2. DEFINING ORGANIZATIONAL STRUCTURE Managers need to establish structural designs that will best support and allow employees to do their work effectively and efficiently. A. Several important terms must be defined in order to understand the elements of organizational structure and design: 1. Organizing is arranging and structuring work to accomplish the organization’s goals. This process has several purposes, as shown in Exhibit 10-1 and PowerPoint slide 10-6. 2. Organizational structure is the formal arrangement of jobs within an organization. 3. Organizational design is developing or changing an organization’s structure. This process involves decisions about six key elements: work specialization, departmentalization, chain of command, span of control, centralization/ decentralization, and formalization. Chapter Ten examines each of these structural elements. B. Work specialization is dividing work activities into separate job tasks. Most of today’s managers regard work specialization as an important organizing mechanism, but not as a source of ever-increasing...
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...Statement of Purpose Organizational Design and Structure The target of our presentation will be to comply with the main objectives listed on the first page of chapter 16 from the course’s recommended book, regarding “Organizational Design and Structure”. Consequently, our goals are to be able to properly explain the following topics: I. The relationship between organizational design and an organization's structure. II. The main contingencies that affect the process of organizational design and the differentiation between mechanistic and organic structures. III. The pros and cons of the main forms of organizational structures from which any organization can choose. IV. Why coordination and communication becomes a more present problem with the growth of the organizations and provide tools to overcome this situation. V. The impact IT has had on organizational design and structure. In order to achieve the above mentioned objectives, our strategy is to schematically explain every concept, illustrating them with contrasting, fresh and real examples. The topics to be treated are to be presented in the following order: A. Introduction. A.1 What is Organizational Structure? A.2 What is Organizational Design? A.3 Brief reference to contingency theory’s concept and its approach on organizational design and structure. A.3.1 Contingencies affecting Organizational Design: A.3.1.1 Environment. A.3.1.2 Technology. A.3.1.3 Human Resources...
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...Organizational Design Article Student Name Institutional Affiliation Introduction Organizational design refers to the art and science of optimizing an organizational structure to support business, cultural, or strategic goals (Burton, 2011). It examines culture, strategies, processes, and structure to achieve the set goals. This paper will give the summary of the article Not what it was and not what it will be: The future of job design research, which will examine the future of organizational design. Article summary This article gives a summary of the future directions of theory and research regarding the organizational design. The authors of this article have focused on the social aspects of modern workplaces, the changing contexts of work performance, the increased teamwork as compared to individual task completion, and the processes that employees involve in the creation of their own jobs. According to Oldham & Hackman (2010), organizational design started long time ago, and this is apparent from Adam Smith’s essay on division of labor. Oldham & Hackman (2010) consider that Smith’s thoughts on design and manufacturing led to the scientific management philosophy. Most workers including industrial engineers adopted this philosophy to increase control and efficiency in the workplace. The primary idea was to design work systems with highly simplified work and standardized operations. This created a hindrance to employee job satisfaction, which discouraged...
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...Organizational Design Paper Alisha N. Craig HCS/514 June 24, 2013 Dr. V. Batiste, Ph.D., MBA Abstract ABC Homecare was established in 1989 in Washington, D.C.’s greater Metropolitan Area. Built with client satisfaction in mind, this agency has overcome many obstacles to keep its value strong even until present day. From only six clients at opening, to now over 200 in each of its four departments, ABC Homecare has grown significantly over the last decade. This success is a result of staying true to the same values that shaped the organization of the company from the beginning. These values are currently used today and it is the internal and external factors that have defined and shaped this organization in terms of size, organizational structure, and processes. Not only does client demand, cost, and quality of health care increase the need for care, but also for accountability. This paper will discuss the internal and external factors responsible for shaping ABC Homecare and the effects of accountability on the facility. Organization Design Paper ABC Homecare was established in 1989 in Washington, D.C.’s greater Metropolitan Area. Built with client satisfaction in mind, this agency has overcome many obstacles to keep its value strong even until present day. From only six clients at opening, to now over 200 in each of its four departments, ABC Homecare...
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...CHAPTER 1 * 1. 1- 1- Organizational Theory, Design, and Change Sixth Edition Gareth R. Jones Chapter 1 Organizations and Organizational Effectiveness * 2. What is an Organization? Organization: a tool used by people to coordinate their actions to obtain something they desire or value Organizations provide goods and services Organizations employ people Organizations bring together people and resources to produce products and services Basically, organizations exist to create value Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall * 3. How Does an Organization Create Value? Value creation takes place at three stages: input, conversion, and output Each stage is affected by the environment in which the organization operates Environment – the set of forces and conditions that operate beyond an organization’s boundaries but affect its ability to acquire and use resources to create value Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall * 4. Figure 1.1: How an Organization Creates Value Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall * 5. Why Do Organizations Exist? People working together to produce goods and services create more value than people working alone 5 major reasons why organizations exist: To increase specialization and the division of labor Division of labor allows specialization Specialization allows individuals to become experts at their job To use large-scale technology Economies of scale: cost...
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...Key Concepts of Organizational Design Allison Battles University of Phoenix / MMPBL 550 November 1, 2010 Professor Frederick Janson Key Concepts of Organizational Design Organizational design is an important aspect of organizational theory that designates many of the processes and the structure within an organization. It can shape the organization’s culture and help the organization to achieve its goals. Organizational design is also important to change management within the organization. The most important factor, though, is that it supports the company’s strategy for success. As many organizations are experiencing growth, the concepts of organizational design become more complex. The organizational designs and structures discussed here will simplify the terms in order for a clearer understanding of the concepts. Importance of Organizational Design Choices Organizational design is vital to an organization’s success. Part of developing a strategy for a company to achieve its goals is to create a dynamic organizational design that fits the company’s purpose, culture, and processes. “To optimize effectiveness, the form of organization must be matched to the purpose it seeks to achieve” (Autry, 1996, para. 7). In the most basic terms, the organizational design should be aligned with the organization’s strategies-the goals, the objectives, and the mission-and support the desired outcome. It is important that the organizational design of a company work...
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...Key Concepts of Organizational Design Ryan MMPBL/550 December 13, 2010 Key Concepts of Organizational Design [The introduction goes here. It should be one or two paragraphs explaining the findings of your paper. The introduction should prepare the reader for the contents of the paper by previewing the four main topics in your paper. Be sure to end with a transition word or sentence to lead into Section 1 of your paper. Triple click anywhere in this paragraph to begin typing your own introduction.] 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 [This should explain the importance of organizational design choices. Be sure to end with a transition word or sentence to lead into the next section of your paper. Triple click anywhere in this paragraph to begin typing.] One valuable element of developing a strategy for a company is to form 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...
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...Key Concepts of Organizational Design Rosalind Patterson MMPBL550 August 30, 2010 Professor Josey Crisostomo Key Concepts of Organizational Design Given the importance of organizational design, why is it so often the blame for inefficiency and ineffectiveness? The reason is because good organizational design helps communications, productivity, and innovation. Organizational design is the process of aligning an organization’s structure with its mission. This means looking at the relationship between tasks, workflow, responsibility and authority, and making sure all these support the objectives of the business (www.mindtools.com). In this paper we will explore the importance of organizational design choices, the advantages and disadvantages of various organizational structures, assess the relationship between strategy, structure, and process in organizations, and analyze the relationship between organizational design and decision-making processes. Importance of Organizational Design Choices Hiring talented people is not enough to ensure the success of an organization. The best and brightest employees will not be able to do their best work in a poorly designed workplace. Consequently, poor organizational design is one of the leading causes of low employee morale and productivity (www.leadership-and-motivation-training.com). Effective organizational design creates a culture of commitment. The employees fully understand their accountabilities...
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...Organizational Structure Management - set of administrative units, arranged in strict subordination and providing linkages between different parts of the organization, as well as the distribution between the rights and responsibilities. It manifests itself through the division of labor, the creation of specialized units and the hierarchy of positions is a necessary element of an effective organization because gives it the internal stability and allows for some order to the use of resources. Depending on the nature of relationships between different parts of the organization are following types of organizational structures: a linear function, linear function (or staff) who belong to the category of so-called "hard", defined fixity of borders, a set of incoming items, fixed links, the matrix, design, and fragmented adhokraticheskuyu categorized as flexible or adaptive structures that have the ability to easily change and adapt to new tasks and objectives. Lenaynaya management structure - system, which has a higher and some lower courts. With this control system, the principle of unity of command, subordinate only to fulfill orders of one leader, edinonachalnika, which are concentrated in the hands of all management functions. This management structure is logically more coherent, but less flexible. Advantages: the unity and clarity of management, coordination of actions of performers, ease of management, efficiency in decision making, personal responsibility of the head....
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...Organizational Design Inescapable Yes or No L. Gina Hunter UMET Miramar Campus ENGLISH 502 Academic Writing for Graduate Student II Prof. Méndez March 24, 2015 The Organizational Design of a Company is necessary for success. Have you ever wondered how some organizations always at the top of the charts, but others don’t survive? Organizational Design Inescapable? A solid organizational design is what makes the difference; it relies on how strong and solid the organizational structure and design are. According to the Center for Organizational Design, organizational design is defined as a step by step methodology that identifies dysfunctional aspects of workflow, 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 (Allen, 2012). As we live in a world of transition, where everything is changing at the speed of light. The organizational design is an inescapable part of any organization; big or small, is the key element for integrating the people, information, and technology. Having a strong organizational design provides a clear vision, and mission, it empower employees in the decision making of the organization. As a result, the reporting process will be transparent; the information will flow smoothly, and it will provide a definite work process. With a well design structure...
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...Organizational Design HCS 514 Organizational Design Sharp Healthcare is designed to meet the needs of the community, physicians, and staff. The organization strives to be the best place to practice medicine, receive care, and work. In 1953 Donald E. Sharp donated $500,000 and the first hospital was built and opened in 1955. Today Sharp Healthcare is the largest regional integrated health system in San Diego County with a more than a quarter share of the health care market. Discussed in the following will be the internal and external factors that define Sharp. In the 1980s Sharp’s strategy was to embark on a mission to develop a vertically integrated health care network of facilities and providers. Today Sharp operates four acute-care hospitals, three specialty hospitals, three affiliated medical groups, a health plan, four long-term care facilities, a liability insurance company, and two philanthropic foundations. Sharp is licensed to operate 1,870 beds, provides care to approximately 785,000 individuals annually including 350,000 HMO enrollees (Sharp, 2007). Internal Factors September of 2001 Sharp HealthCare launched “The Sharp Experience” an initiative to enhance performance improvement. The initiative was designed to transform the health care experience. Everything at Sharp from performance evaluations, meeting agendas, and strategic planning is aligned with the six pillars of excellence. The six pillars of excellence are Quality, Service, People, Finance, Growth...
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