Organization Design

Introduction

Organizations based their business system in different structures. Organizations can operate with blended approach between mechanistic and organic structures that need to change within some of structural traits as organizations change and mature.

A success factor for organizations has the ability to adapt different structures, systems and processes to capture new market and expand. The organization design is a critical determinant of strategic competitive advantage. The importance of organization design for business leaders will also determine how effective is their strategies.

Discussions

The two structures for organization are basically the organic and mechanistic organization. A mechanistic organization has a rigid structure that is inflexible. Meanwhile, an organic organization is loosely designed with few levels of hierarchy and a lot of flexibility. The two structures will impact the effect of an organization.

The contingency factors of organizational design decisions can affect the strategy and structure that can facilitate the achievement of goals. The innovation is a free flow of information that is based on organic organization. The cost minimization that seeks efficiency, stability, and control is under the mechanistic organization.

The technological aspect of an organization in both mechanistic and organic supports the routine and non-routine technology, respectively. The output of every technology depends on the production types.

Mechanistic Versus Organic Organization Design

Mechanistic Organization is rigid and tightly controlled structure that minimizes the impact of differing human traits and most of the organizations adopted this kind of design and characteristics.

Organic Organization is highly adaptive and flexible structure that can give permits to change when the need arises. It gradually highly trained employees and empowered to handle different job activities. And the minimal formal rules and little direct organization can be emphasized.

Strategic Organization Design

The organization design is a core business competency that identifies changes in the marketplace and adapts the structures and processes to extend the competitiveness. The organization design provides the ability for the firm to allocate resources such as people and money to drive specific strategies.

Another beneficial factor of the design is to ensure the right information to reach the right people at the right time. And the design can assure to provide great transparency in terms of financial performance with its key products and technologies to track the effectiveness of the organizational strategies.

Successful companies needs to sustain marketplace advantage to use the specific ways to manage the different practices. An effective structure can deliver many positive results like eliminating the bureaucracy, simplifying the environment as making it easy to work in. The promotion of cooperation and exchange of useful ideas and information and putting the best talent on where the action is present by establishing systems ready fort the organization can reflect on a successful firm.

Conclusion

            An organization can drive the whole business enterprise into success as long as they keep a strategy on their side. A good strategic organization design can help the business firm as it travels on the path of becoming the top leader of the industry.

The structures like organic and mechanistic type are based on the firm’s size and strategy. It is on the business’s future to keep the design completely innovating and extending and the benefits will solely fall under their cover. The business’s design, whether organic or mechanistic, should be used appropriate in the business’s systems and therefore, the market share of the firm will grow and vast.

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