Organization design is designed as per the business strategy and the market environment in which business operates. It must then have the right business controls, right flexibility, right incentives, right people and right resources.
Points to be kept in mind while designing an organization can be:
Structure and strategy are dependent on each other. you can create the most efficient, team oriented, synergistic structure possible and still end up in failure in business. That is the things should be put in right place at right time.
Different organization structures are:
* Pre-bureaucratic structures: This structure is most common in smaller organizations and is best used to solve simple tasks. Pre-bureaucratic structures lack standardization of task.
* Bureaucratic structures: They are better suited for more complex or larger scale organizations, usually adopting a tall structure. Bureaucratic structures have a certain degree of standardization. In a strict bureaucratic administration precision, speed, unambiguity, strict subordination, reduction of friction and of material and personal costs are raised to the optimum point.
* Post- Bureaucratic: In which decisions are based on dialogue and consensus rather than authority and command, the organization is a network rather than a hierarchy. This model is often used in non profit or community organization.
* Functional structure: Employees within the functional divisions of an organization tend to perform a specialized set of tasks, for instance the engineering department would be staffed only with software engineers.
* Divisional structure: Each division within a divisional structure contains all the necessary resources and functions within it. Divisions can be categorized from different points of view. One might make distinctions on a geographical basis or on product/service basis. Ex: An automobile company with a divisional structure...
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