ORGANIZATIONAL DESIGN PDF

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Concept of organizational design, size and life cycle, differentiation and integration, integration, mission of the organization, vision of the organization, global goals, basic dimensions of organizational design, mechanistic model and organic model of organization, organizational models, simple st...

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ORGANIZATIONAL DESIGN

Organizational design concept Organizational design is the process of continuous construction and adaptation of the structure of the organization to achieve its objectives and strategies. The structure represents the interrelationship between organs and tasks within an organization, and is doubly dependent: outside, it depends on the strategy to achieve the overall objectives, and within the organization depends on the technology it uses. Organizational design is complex due to the existence of many positions and units whose integration and coordination require much more than simply the accumulation or union of positions or units. Relationships between positions in an organization should take into account that each item is linked to others. Each position functions as its own system that interacts with others. While organizations are often described as sets of people who come together to pursue a common goal, they are actually much more than that. They are also complex sets of functions, relationships, and responsibilities that are not always clearly thin or delimited. The structure design is not immutable, but a set of complex variables in which numerous options can be applied. Organizational design involves key aspects such as dividing the work and assigning it to different positions, groups, units and departments, and how to achieve the coordination needed to achieve the objectives of the organization in sync. These decisions are often known through organization charts and job descriptions. The organizational design must take into account the following variables: 1. Environmental factors: the mission of the organization, its vision, strategy, environment (macro and micro), technology used and stakeholders involved. 2. Anatomical dimensions of the organization: size, configuration, dispersion geographer of the units and combinations between them. 3. Aspects of operations: authority, processes, tasks and daily activities and controls. 4. Behavioral consequences: performance, satisfaction, rotation, with fict, anxiety and unusual patterns of relationships at work. Because the combination of these factors is different in each organization, there is no unique way to design it. The design of the organization is one of the priorities of management. This platform should address three aspects:

1. The basic structure, which serves to plan the allocation of personnel and resources for each task, takes the form of job descriptions, organization charts, team training and advice, etc. 2. Operational mechanisms tell the organization's internal partners what is expected of them through working procedures, performance standards, evaluation systems, compensation and reward policies, and communication programs. 3. Decision-making mechanisms enable forecasting to contribute to the decision-making process and knowledge. These mechanisms include agreements to obtain information from the external environment, procedures for cross-reference information, evaluation and making available to decisionmakers, and knowledge management. Size and life cycle The size of the organization (number of people, number of resources, architecture, and operations) determines its design. Organizations can be classified as large, medium, small, and micro. Increasing size is almost always the result of the organization's success and is measured by the number of workers. The evolution or life cycle of organizations shows the different stages of their growth. The main stages of the life cycle of organizations are as follows: 1. Birth. Occurs when an entrepreneur creates or finds an organization. The structure is extremely simple. 2. Childhood. The organization is starting to grow. The structure begins to expand and responsibilities are distributed among people. Increase vertical and horizontal specialization. 3. Youth. The organization grows thanks to its success. It is becoming more complex and strengthens its structure. Several administrative levels arise in the chain of command (greater vertical specialization) and the founder begins to have trouble maintaining full control of the business. 4. Maturity. The organization stabilizes in size and generally adopts a more vertical structure making processes more bureaucratic. The tendency of bureaucracy towards stability and permanence can lead to decline. One way to avoid this is to combat gigantism by reducing the size of the organization and the number of employees (reducing the size). This alternative applies when senior management faces the challenge of reducing costs and rapidly increasing productivity. Another option is to face the disadvantages of size by forming small units that operate with their poor autonomy within the overall scheme of the organization. Simultaneous structures, combining mechanistic and organic design, are used to meet the opposite needs of efficiency (status quo maintenance) and continuous innovation (change). This stop-and-go method maintains the conventional structure and encourages the creation of multifunctional equipment in all areas. Another

way to create creative axes is to take advantage of the entrepreneurial spirit of the people and subunits of the organization. Differentiation and integration Organizational design is due to two basic and opposite processes: differentiation and integration. Differentiation Differentiation consists of dividing work into an organization and relates to the specialization of organs and people. Differentiation can be horizontal, vertical, or spatial: 1. Horizontal differentiation between the units of the organization is based on the specialization of knowledge, education or the training of people. The greater the horizontal differentiation, the greater the number of specialized departments at the same level in the organization. Horizontal differentiation causes flat structures to appear. 2. Vertical differentiation refers to the different levels of authority and responsibility in the organization. The higher the vertical differentiation, the higher the number of hierarchical levels. Vertical differentiation causes dynamic structures to emerge. 3. Spatial differentiation refers to the geographical dispersion of the organization into organs and units in different locations. Distance complicates the design of the organization Integration It is the process of coordinating the different parts of an organization to create unity between people and groups. Integration seeks to achieve a dynamic state of balance between the different elements of an organization to avoid with filictos between them. The integration can also be vertical or horizontal: 1. Vertical integration refers to coordination mechanisms resulting from the use of hierarchy, i.e. hierarchical authority, action plans and programmes, rules and procedures. 2. Horizontal integration refers to coordination mechanisms between hierarchical bodies of the same level, i.e. liaison functions, integrative posts, working groups and work teams. While differentiation seeks to adapt the structure to the various demands of the environment, integration seeks to combine the structure to maintain cohesion, so that the organization works as a whole. One is specialized and parting, while the other articulates and joins. What is the purpose of the organization?

The first step we rely on the purpose of the organization. Three questions are essential: 1. What is the organization's business? 2. Who's your client? 3. What value does the organization offer the customer? The natural trend is that the answer is limited to the organization's product or service. This is a short-sighted approach that fails for the immediate. Avon's founder emphasizes that he produces cosmetics in his factory, but in stores he sells hope. Organizations are expanding their business concept with a strategic approach. Your organization's design must be compatible with your business. Every company, however small, has a structure of internal and external relationships. Mission of the organization Organizational design allows the organization to move forward to carry out its activities and achieve its objectives. Understanding your organization's design requires knowing the role it plays. In other words, it's important to know the mission, vision, goals of the organization, and its critical success factors. In the background, organizational design is an instrument to fulfill the mission and achieve the strategic objectives of the organization. Mission, vision and objectives determine the design of the organization. The mission should not be limited to the products, services or processes of the organization. It must be more than one set of operations. The mission is the reason for each organization, the role it plays in society. Resignation is going, it requires consensus. It should be generated in the direction, indicating the direction that the organization will go in the long term and then discussed with stakeholders in order to reach a match that generates a compromise. When the mission of trust sits down in writing, it allows stakeholders to communicate the reason for the organization and acts as a constant reminder so that people know exactly how to help achieve it. Defining the mission allows you to clarify: 1. 2. 3. 4.

What is the fundamental purpose of the business. What is the role of the organization and its contribution to society. What are the basic needs that the business must meet. Who is the customer and what are the target sectors of the market that the organization serves. 5. What skills does the organization have to acquire or develop. 6. What are the commitments, values and beliefs that consolidate the business.

The mission must put into words the philosophy of the organization that has generally been formulated by its founders or creators through behaviors and actions. This corporate philosophy includes the values of beliefs that constitute the basic principles of the organization and underpin its ethical conduct, social responsibility and responses to the needs of the environment. Each organization is a living being in constant development. Successes are constantly updated and their mission expands as their business environment changes. In 1914, IBM manufactured input control clocks and punched card readers. Since then, he has kept a creed and principles in mind, even though the mission has changed. Today, IBM's mission is to provide creative and intelligent information solutions that do this to its customers. The company's products and services, such as processors, servers, storage systems, microcomputers, software and corporate solutions, among others, are the means, that is, the bridges for this to happen. David Packard, one of hp's founders, said, "The real reason for our existence is to provide something special to the customer, not necessarily products or services." Philips has adopted the motto: let's improve things to offer this extra. Xerox has become the document company to support its brand. This explains why Theodore Levitt says, "The first thing for any business is to stay in business." Today innovation is a necessity. Over time, 3M has become an innovative company that launches a new product to market every three days, and each arises from the perception of a need. Products and services are medium, unreliable. Mission is what gives identity to the organization. The organization's executives must cultivate the mission with love and spread it widely so that everyone senses it and personally commits to achieving it. This missionary character transforms all organizations, including those that offer products, such as IBM, into true customer service providers. Cultivating the mission means that all members of the organization not only try to serve the customer, but above all, exceed their expectations and leave them delighted. In essence, all members of the organization work together to accomplish the mission. Vision of the organization Vision is the image of the organization of itself and its future. It's your effort to visualize yourself in space and time. In general, the vision is often more oriented towards what the organization pretends to be that it has done what it really is. From this perspective, organizations raise their vision as the project of what they would like to be in the long term and the path they intend to follow to achieve this goal. Organizations often use the term "vision" to indicate that they are clear about the future they aspire to and the actions needed to quickly achieve success. Vision is the destiny that is intended to become reality. Therefore, the goal of the vision is to create a common identity in terms of the purposes of the organization to guide the behavior of its members in relation to what they want to build. On the contrary, the lack of vision is extremely damaging,

as it disorients the organization and its members in relation to their priorities in a very changing and competitive environment. The vision is only achieved when all members of the organization work together and with a commitment to realize this dream. As Joel Arthur Baker said: "Actionless vision is never a dream. Action without vision is just a hobby. The vision with action can change the world." Global goals Objectives are very common concepts in our society. One of the objectives is a desired future state, which we try to make a reality. In practice, the objectives are specific results that are intended to be achieved in a given period. While the mission defines what the business is and the organization's vision provides an image of what the organization wants to be, the final goals or concrete results that are expected to be achieved within a specific timeframe and indicators measure the result achieved. The objectives of the organization do not always correspond to the objectives of the people who compose it. When people enter an organization they look for individual goals: they occupy a position, they earn a salary, they receive social benefits, they earn status. However, organizations require each person to contribute to achieving the goals of productivity, profitability, cost reduction, quality and competitiveness. This creates a dilemma for the individual: to pursue the objectives of the organization? Almost always one side achieves its goals at the expense of the other. When the win/lose strategy prevails, one of those involved always has an advantage. The important thing is to make a win/win strategy for both parties. In other words, achieving an organization's goal must benefit people so that they can also achieve their goals. Basic dimensions of organizational design Organizational design depends on certain dimensions that give it an appropriate structure: formalization, centralization, hierarchy of authority, breadth of control (or command), specialization, and departmentalization. The focus on each of these dimensions will guide organizational design as mechanical or organic. Mechanistic model and organic model of organization By analyzing the basic dimensions of organizational design, we can determine whether an organization follows a mechanical or organic model. Both models are the ends of a wide variety of combinations. When the basic dimensions of organizational design are very marked, a mechanistic or traditional model is observed, of which formalization, centralization, hierarchical authority, specialization and standardization of procedures are observed. Desamation results in real fiefdoms in the organization. The traditional model has a pyramidal configuration, based on departments and stalls and is basically rigid and flexible. It has all the characteristics of the bureaucratic model,

typical of the industrial era and which dominated almost the entire twentieth century. On the other hand, when the basic dimensions are poorly accentuated, an organic model is observed, increasingly common among organizations seeking exible and agile performance. In this model there is little formalization, centralization, hierarchy, specialization, complexity and standardization. It has a circular shape, based on temporary and multifunctional equipment, and is extremely flexible and changing. It is suitable for the change and competitiveness that characterize the age of knowledge. The mechanistic model is suitable for stable or small environments. The mechanistic organization takes advantage of stability with a design that seeks greater science across various basic dimensions. As nothing changes, formalization guarantees documentation of everything that happens; centralization of decisions allows absolute control; hierarchy ensures that work is carried out; Specialization makes it easier for each person to do a specific job and standardization to be the same as activities, complicating design. Therefore, the organization becomes heavy, slow and intricate, and prevents changes and innovations in his paintings. On the other hand, organic design includes very few basic dimensions and adapts to the dynamic changes and conditions of the environment, which favors saved design and allows people to have a huge degree of freedom, decentralize decisions, drastically reduce hierarchies and encourage delegation of authority and responsibility in people. Thus, the organization acquires enormous flexibility and adaptability, which translate into creativity and innovation, elements of great value today. In this scenario there are two approaches to organizational design: traditional and systemic. According to the traditional approach, the basis of organizational design is hierarchical control and vertical work leakage. The nature of the organization emphasizes centralized management at the summit, personal and direct oversight, and vertical relationships between boss and subordinate. This approach focuses on the boss and does not take into account the customer, vendors, or horizontal flows in the organization's processes. The systemic approach focuses on processes—and therefore adaptation to change—and task leakage in horizontal processes. The nature of the organization gives importance to the client, decentralized decision-making processes and horizontal relationships. While the traditional approach is based on division of labor and specialization, the systemic approach is based on the holistic vision of the organization and the main processes that provide products and services to the consumer. It is as if the organization chart is reserved to allow work to escape departmental boundaries and reach the client's hands as soon as possible.

Departmentalization As organizations grow, the complexity of the organization's work increases due to the growing number of tasks and members. This vertical specialization Sebastiana, that is, in a greater number of hierarchical levels, and in horizontal specialization, that is, a greater number of departments to better coordinate people and tasks. This horizontal specialization is called departmentalization, that is, grouping tasks and people, according to some criteria: 1. Functional departmentization: consists of creating departments by function, that is, grouping specialists in similar activities. In general, the main functions seen in organizations are application, production, marketing, and human resources departments, which can be divided into sections. For example, the trust area can be separated into cash, receivables, and accounts payable; marketing, market research, sales and advertising, and human resources in recruitment and selection, training, payroll, etc. Newspapers may receive different names according to their nature within the organization. A university divided by functions can have departments of medicine, pharmacology, veterinary, administration, accounting, economics, psychology, sociology and anthropology. A hospital may have emergency units, external consultation, surgery, hospitalization, intensive care, etc. A football club can have departments for the care of athletes, sale of venues, stadium management, etc. Functional departmentalization has the advantage of meeting in the same unit of organization experts who possess common skills and abilities in order to obtain greater and reliable wool through economies of scale. 2. Departmentalization by products or services: consists of groupin...