Design of Oragnization Structure

K.C.J & Associates Ltd.

The only private power distribution company of Bangladesh.

Design of Organization Structure

By Khandaker Mehedi Hasan

Design of Organization Structure by Khandaker Mehedi Hasan

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Introduction:

Organization design involves the creation of roles, processes, and formal reporting relationships in an organization. One can distinguish between two phases in an organization design process: Strategic grouping, which establishes the overall structure of the organization, (its main sub-units and their relationships), and operational design, which defines the more detailed roles and processes. The field is mainly practice-driven and many consulting firms offer organization design assistance to managers. However, there is also a substantial academic literature. The most frequently cited book is still Thompson (1967); other key works include Galbraith (1973) and Lawrence & Lorsch (1967). It is important to distinguish between organization design and organization theory. The latter is a descriptive discipline, mainly focusing on describing and understanding organizational functioning. Organization design is (as the name suggests) a more normative, design-oriented discipline that aims to produce the frameworks and tools required create effective organizations.

The Nature of Organization Design:

We noted that job specialization and span of management are among the common elements of organization structure. We also described how the appropriate degree of specialization can vary as can the appropriate span of management. Organization design is the overall set of structural elements and the relationships among those elements used to manage the total organization. Thus organization design is a means to implement strategies and plans to achieve organizational goals. As we discuss organization design, keep in mind two important points. First, organizations are not designed and then left intact. Most organizations change almost...