Organizational design: structure, principles and reasons for use

Organizational design is used to create the most convenient management system at each enterprise.

The tasks of this type of design are the definition and typification of structural elements of the labor organization system , as well as their coordination. This is done in order to achieve your goals after making changes.

Organizational design includes several main components:

1. Structures It can be organizational, legal, financial and so on.
2. Business processes. They are a way to implement basic system functions.
3. Management systems. These are internal planning and control systems that take into account motivation, quality management, as well as the internal regulatory framework.

Organizational design is a system that allows:

1. Develop an organizational structure that will correspond to a specific company strategy.
2. Coordinate the system in the main company and in its business units.
3. Establish business processes in the company itself.
4. Develop a system that will take into account working hours.
5. Settle the creation of job descriptions.
6. To develop a unified system of remuneration and remuneration (bonus, piece-rate payments, etc.).

To create a project for the effective organization of labor - this means highlighting the optimal ratio of elements that allows you to quickly and timely fulfill all the requirements of the company’s management subject.

There are such stages of organizational design:

1. Clear identification of the goals, directions and main functions of the company.
2. Determination of the optimal type of organization.
3. Creation of workers.
4. Allocation to each working group of a certain level of management.
5. The choice of the most convenient management structure.
6. Distribution of powers and responsibilities.
7. The choice of the type of information alert and its creation.

As a rule, organizational design has several reasons to use. This is justified if there are problems with the release of new products, as well as in cases where there is a problem with costs that cannot be reduced. Also, the factors that caused its use may be as follows:

1. It is not possible to increase labor productivity.
2. The performance of this enterprise in the market is deteriorating (sales volumes are declining, market share is decreasing).
3. The types of activities of the enterprise are expanding, and the number of products is growing, and the market is expanding .
4. Ineffective work of senior or middle management due to overload or repetition of functions, as well as the development of conflicts on organizational issues.
5. Increasing requirements for the quality of goods, as well as for delivery time and the provision of services.
6. The beginning of increased competition between companies that provide goods and services.
7. Organizational design is relevant when new technologies are developed and actively used, as well as automation of production.
8. Also, if the enterprise is being restructured, as a result of which it is merged with other entities, or simply the liquidation of individual production branches is carried out.

As you know, the information technology system is of great importance in the structure of organizational design. The fact is that it is they who debug and help to stably carry out the work of all production processes. It is information technology that is the main component of the success of any project or development because their foundation is laid.