Organization Design – A Close Look at the Concept

Organization Design – A Close Look at the Concept


The essence of any organization is the basis of competitive advantage, and it is essential for business owners to address organizational performance along with employee management. There are different types of questions that should be explored by the business owner to know if the organization is well designed or not.

Business owners often equate the design of an organization with organization’s structure. Organization design encompasses more than simply a structure. It can be defined as the process of aligning the structure of an organization with its objectives. It mean, one should look at the relationship between tasks, responsibility, authority, workflow and other things and make sure that all these activities support your business. A perfect organizational design helps communications, innovation and productivity. It creates an environment where people can work in an effective manner.

There are a number of performance and productivity issues that can be tracked to poor organization design. Despite of having great mission, people and leaders, companies fail to perform well due to poor organizational design. The performance of an organization is based on how the work is done, how the people are incentivized, how the employees are rewarded and other factors. All these factors are the key features of organization’s design and play a very important role in organization’s success.

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