Ms -8

Course Code : MS-10 revised Set – 2 

Course Title : Organisational Design, Development and Change

Assignment No. : MS-10/TMA-1/SEM-1/2005

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1. Discuss the meaning and theories of Organisation Design. Describe the key factors affecting organisation design with suitable organisational examples.

Answer. Organization design is central to an enterprise’s ability to be market driven, adaptive, innovative, and more – in short, to be able to compete effectively. Following are some core principles:

• Organization design is more than just structure – it is the integration of structure, processes, people, culture, systems and technology

• Strategy is the starting point – organization design must be driven by, and supportive of, overall strategy

• Clarity and accountability underpin sound organization design –when good people know what to do and are held accountable, they achieve results

• Transitioning to a new organization end-state requires an integrated approach to change management

Factors Affecting Organization Structure :

1. Environment: The organization is not an isolated island and is affected by changes in the environment and it too affects the environment, while undertaking organizational design the complexity and stability of the relevant environment must be taken into account. The organizational environment can be homegrown stable, homogenous shifting, heterogeneous-stable or heterogeneous-shifting, heterogeneous-stable or heterogeneous-shifting according to Thompson. Ray Jurkovich came up with a core topology matrix for organizational environments which includes homogeneity, heterogeneity, and change rate continuum in 64 combinations.

2. Technology: Technological changes affect organizations in more ways than one way. The changes in technology are leading not only to the new products and processes but also change the requirements of...