At a macro level, organization design ensures that the collective effort of employees achieves specified as well as desired business needs. Organization design is based on the analysis of activities, decisions, information flows and roles. The outcome is a structure, which consists of positions, and units between which there are relationships involving cooperation, the exercise of authority and exchange of information. Organization Design also creates an environment where roles and relationships are clearly defined and understood.
Organization Design aims to produce a logical, coherent, cohesive and yet flexible structure which would easily adapt itself to new market conditions and thus facilitate the organization’s objectives. It is thus a continuous process of modification and change and never a one-off event
Finally, the aim of Organization Design is to strike the right balance between integration and differentiation across various functions and levels, to arrive at the structures, roles, deployment planning and other process mechanisms to meet the business objectives of internal and external customers for today's and tomorrows’ market needs.
Structure : In the highly competitive world of today the context for business changes every day. The time for five-year business plans is over. Organizations need to rethink their strategy on a continuous basis. This requires organizational structures that are flexible and yet focussed. Multiskilling, deployment of technology and the Internet are redefining the rules of the game. Organizations are needed to be extremely creative in designing structures that deliver innovative products and services at lower and lower prices and at the fastest speed.
Roles : In the new economy of the 21st century organizations are reinventing their business models. E-commerce, ASP's and new technologies are creating new ways of working and operating. Flexitime and working from home are redefining jobs and structures. In this new world, roles of company and business heads, team leaders and process champions are becoming very different. Control and hierarchy are being replaced with empowerment and "leading from within". Redefining roles to suit the new structures and strategy is therefore a very crucial process.
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