©2008 IE. This type of pronouncement may sound simple, but it’s surprisingly effective for keeping the focus on the new strategy. It focusses on improving technical and interpersonal side of the workplace. Each of these categories will typically have an executive lead, managers, and staff. These elements must … Organizational Design is a sequential method of identifying the performing aspects and liabilities in a system, so that they can be re-aligned as per the needs of the company, such as current goals and implementing new business changes. The process focuses on improving both the technical and people side of the business. Organizational Types and Considerations for a Small Business Participant Guide Money Smart for a Small Business Curriculum Page 3 of 21 Welcome Welcome to the Organizational Types and Considerations for a Small Business training. For most companies, the design process leads to a more effective organization design, sign… Contemporary designs would include team structure, matrix structure, project structure, boundaryless organization, and the learning organization. Employees are grouped into major work functions, which are then arranged into a hierarchy. It focusses on improving technical and interpersonal side of the workplace. Published by IE Business Publishing, María de Molina 13, 28006 – Madrid, Spain. organisational design and development (Weiner, 2009). Organizational design is useful in all types of organizations irrespective of the size and business type. After the objectives of an organization are established, the functions that must be performed are determined. We also look at some traditional and contemporary organizational designs, as well as organizational design challenges that today’s managers face. Some common categories include finance, marketing, and sales. Chapter 11: ORGANIZATIONAL STRUCTURES: CONCEPTS AND F0RMATS When two or more people work together to achieve a group result, it is an organization. It creates an environment where people can work effectively. Traditional designs include simple structure, functional structure, and divisional structure. Original version 3 June, 2008. ORGANIZATION DESIGN Original by Professor Nestor Miranda Carus of the IE Business School. Types of Organizational Designs. Organizational Design 22 Organizational Change 22 Summary 23 • Discussion Questions 23 Organizational Theory in Action: Practicing Organizational Theory 24 Open Systems Dynamics 24 The Ethical Dimension #1 24 Making the Connection #7 24 Analyzing the Organization: Design Module H 24 Assignment 25 Chapter 2 Stakeholders, Managers, and Ethics 28 It is the onus of organisational leadership to create a team that is highly dynamic and ready to Personnel requirements are assessed and the physical resources needed to accomplish the objectives determined. Functional structure is one of the simplest types of organizational design. This section is presented by: Adam Garcia: Organizational designs fall into two categories, traditional and contemporary. We look at the various elements of organizational structure and the fac - tors that influence their design. Organizational designis 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. In this chapter, we present information about designing appropriate organizational structures. Organizational Design 3 Organizational Design is a sequential method of identifying the performing aspects and liabilities in a system, so that they can be re-aligned as per the needs of the company, such as current goals and implementing new business changes. An effective organizational design helps communications, productivity and innovation. vi According to Capelle Associates Inc., an Organization Design consulting firm in Toronto and Montreal, the benefits of Organization Design include: Improved employee satisfaction Re-designing organizational structure always comes with great improvement in terms of quality, customer satisfaction and improved customer service, less turnover and absenteeism of employees, increase in productivity, etc. Design with “DNA.” Organization design can seem unnecessarily complex; the right framework, however, can help you decode and prioritize the necessary elements. Total or partial publication of this document without the express, written consent of IE is prohibited. ORGANIZATION DESIGN DE2-110-I 7 DEPARTAMENTALIZATION This is the selection of the types of departments that integrate each unit of specialized work within the hierarchy of the organization. The criteria normally used are: By speciality or function – Structural Functional By product line … 2. By taking this training, you are taking an important step to building a better business. Last revised, 25 November 2011.

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