Organization Design Issues - Essay Example

In other terms, managers and employees must work together to come up with the objectives of an organization and create systems that would assist in the achievement of these objectives in an efficient manner (Stephen & Coulter, 2005). A systematic approach that involves critical thinking is required in this process since it creates the executive plan of a company.

The organization design process starts with the identification of a strategy with a clear statement of purpose and vision for an organization. Such a strategy is important as it unites all employees toward achieving their personal and organizational goals. It also encourages actions that are geared towards attaining these goals and discourages activities that go against these objectives (Stephen & Coulter, 2005). Though creating a strategy is a planning process and not organizing, it is essential since it brings together all employees and defines roles clearly. Organizational structure is vital since it defines the relationship between people while at the same time defining their roles and responsibilities (Stephen & Coulter, 2005). The following are the factors to consider when creating an organizational structure for an organization; strategy, size, environment, incentives, and controls. A well-created organizational design helps create an environment suitable for innovation, communication, and productivity. It forms an environment where individuals can work effectively.

The following are the key features that a business organizing exercise should entail as they define important and distinctive characteristics of any organization. First works specialization or job enrichment, refers to the extent to which a business divides its job into distinct tasks (Stephen & Coulter, 2005). Through this division, an organization aims at ensuring that demanding jobs are not done by an individual; instead, a job is broken into smaller parts, each handled by different workers (Stephen & Coulter, 2005). Hence, each employee specializes in doing his/her part, which results in reduced job duplication, improved productivity of every employee, and reduced conflicts among employees where roles are not clearly defined. Work specialty hence improves the overall performance of an organization.

The second and third factors are departmentalization and chain of command respectively. Departmentalization, which could be functional, product, or geographical, depending on the needs of an organization, should form the basis on which tasks are grouped. On the other hand, a chain of command implies a continuous line of authority, which extends from the top management to the lowest-level employees. In essence, it dictates who reports to who in an organization and hence refers to the authority, responsibility, and unity of command in an organization (Stephen & Coulter, 2005). The other organizing factors are the span of control and centralization or decentralization. Whereas span control defines the number of ranks and managers that an organization has and indicates the number of employees under every manager or supervisor, centralization and decentralization determine the type of control in an organization (Stephen & Coulter, 2005). That is, whether the control is by a few people or a large group. There are different designs that a business may adopt in organizing its workers and structures.

A simple structure is characterized by low departmentalization, centralized authority, and a wide span of control (Stephen & Coulter, 2005). It is common in small start-up businesses with few employees. This structure does not require multifaceted and complex structures to function. In a hierarchy structure, an organization’s structure is divided into teams and levels with several middle managers and an overall manager at the top (Stephen & Coulter, 2005). The top manager controls and works with the middle managers to ensure smooth operations. The third type is the flat structure, also known as the horizontal structure.