Organizational Design and Organizational Structure

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An organization is a pattern of relationships-many interwoven, simultaneous relationships- through which people, under the direction of managers, pursue their common goals. These goals are the products of the decision - making processes. The goals that managers develop through planning are typically ambitious, far-reaching, and open-ended. Managers want to ensure that their organizations can endure for a long time. Members of an organization need a stable, understandable framework within which they can work together toward organizational goals. The managerial process of organizing involves making decisions about creating this kind of framework so that organizations can last from the present well into the future. Managers must take into account two kinds of factors when they organize.

(1) First, they must outline their goals for the organization, their strategic plans for pursuing those goals, and the capabilities at their organizations for carrying out those strategic plans.

(2) Secondly, simultaneously, managers must consider what is going on now, and what is likely to happen in the future, in the organizational environment. At the intersection of those two sets of factors - plans and environments- managers make decisions that match goals, strategic plans, and capabilities with environmental factors. This crucial first step in organizing, which logically follows from planning, is the process of organizational design. The specific pattern of relationships that managers create in this process is called the organizational structure.

Is a framework that managers devise for dividing and coordinating the activities of members of an organization? Because strategies and environmental circumstances differ from one organization to the next, there are a variety of possible organizational structures.

Organizational structure...
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