Organizational design and structure – Its importance

With reference to Gill Corkindale’s blog, I will write on the importance of having an organizational design and structure according to the culture of the company. I agree with her idea that as organizational strategy changes, structures, functions and roles should be realigned with the new objectives.


Organization design and structure has become so crucial that it dictates how people function in any business, thus directly affecting the functioning of the company. However, more often than not, organizations either overlook the importance of importance of organizational design or simply don’t know what to do. An outdated and improper structure can lead to ambiguity and commotion inside a business therefore breaking down co-ordination, decision making processes in the business. Moreover, it can lead to huge conflicts between managers, employees and the other shareholders of the company. Such problems would furthermore reduce the company’s strengths and hamper its opportunities to develop.

Therefore, it is imperative for the managers or the CEO’s of any company to search for the right combination of its structure and design that would suit their company. A good structure and design will lead to an improvement in communication, increase output and productivity of its employees and most importantly make all the shareholders happy.

 

Reference – http://blogs.hbr.org/corkindale/2011/02/the_importance_of_organization.html

 

Image Ref –  http://www.mainstconsulting.com/graphics/organization-design-gfx.jpg

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