Organizational design, six key elements of organizational design, different types of
organizational design, advantages and disadvantages of different types of organizational
design, organizational structure, dimensions of structure, situational influences on
organization design. Students, today we will be discussing regarding organizations, their
design, and structure.
! An organization is a pattern of relationships-many interwoven, simultaneous
relationships-through which people, under the direction of managers, pursue their
! Goals are the products of the decision-making processes in planning. 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 this type 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:
! 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
! 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 these 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
! Organizing is important because it follows from strategy. Strategy defines
to do it. Organization structure is a tool that managers use to
harness resources for getting things done.
! Organizational structure is a framework that managers device for dividing and
activities of members of an organization. Because strategies and environmental
circumstances differ from one organization to the next, there are a variety of possible
Six Key Elements of Organizational Design