TECHNOLOGY & ORGANIZATIONAL
DEVELOPMENT
PA 217
Organizational Structuring and Development
SAHARA JHO E. CABREROS
Organizational Design viz Organizational structure
What is Organizational Design?
Organizational design is a step-by-step methodology which
identifies dysfunctional aspects of work flow, procedures,
structures and systems, realigns them to fit current business
realities/goals and then develops plans to implement the new
changes. The process focuses on improving both the technical
and people side of the business.
Objective of Organizational Design
A. RESPONDING TO
CHANGE
B. COORDINATING THE
COMPONENTS
After creating new
departments, managers need
to find a way to tie all the
departments together to ensure
coordination and collaboration
across the departments. The
departments have to work
together either through
reporting relationships, crossfunctional teams or task forces
in order to avoid conflicts and
problems and to meet customer
needs.
to changes.
C. INTEGRATING NEW ELEMENTS
As organisations grow, evolve, expand and
respond to changes, many new positions and
departments will have to be added to deal with
factors in the external environment or with new
strategic needs. These new elements will have to
be integrated into the overall structure of the
organisation which means virtually restructuring
the organisation. For instance, the strategic need
to enhance quality of customer service may need
dismantling of functional departments, creating
teams and re-delegating authority.
D. ENCOURAGING FLEXIBILITY
Organisational designers want to build into
the organisation – with all its authority,
chains of command, bases of
departmentalisation – flexibility for decision
making, for responding and redirecting
resources and for focusing employee’s
talents this objective differs from that of
responding
Good organizational structure and design helps
improve communication, increase productivity,
and
inspire
innovation.
It
creates
an
environment
where
people
can
work
effectively. Most productivity and performance
issues can be attributed to poor organizational
design.
Why Organizational
Design?
Excellent customer service
Increased profitability
Reduced operating costs
Improved efficiency and cycle time
A culture of committed and engaged
employees
A clear strategy for managing and growing
your organization/business
Why Organizational
Design?
RESULTS OF OUTDATED ORGANIZATIONAL STRUCTURE
 Inefficient workflow with breakdowns and non value-added steps
 Redundancies in effort (“we don’t have time to do things right, but do
have time to do them over”)
 Fragmented work with little regard for good of the whole (Production ships
bad parts to meet their quotas)
 Lack of knowledge and focus on the customer
 Silo mentality and turf battles
 Lack of ownership (“It’s not my job”)
 Cover up and blame rather than identifying and solving problems
 Delays in decision-making
 People don’t have information or authority to solve problems when and
where they occur
 Management, rather than the front line, is responsible for solving problems
when things go wrong
 It takes a long time to get something done
 Systems are ill-defined or reinforce wrong behaviours
 Mistrust between workers and management
STAGES OF ORGANIZATIONAL
DESIGN
1. An analysis of the existing
arrangements and the factors
that may affect the organization
now and in the future.
2. A diagnosis of the problems
and
issues
facing
the
organization and what therefore
needs to be done to improve the
way in which the organization is
structured and functions.
3. A plan to implement any
revisions to the structure emerging
from the diagnosis, possibly in
phases. The plan may include
longer-term considerations about
the structure and the type of
managers and employees who will
be required to operate within it
4. Implementation of the plan
Seven Main Factors of
Organizational Design
1. Strategy
2. Size and complexity of
organization.
3. Technology.
4. Environmental turbulence
5. Top management's attitudes
6. Attitudes of personnel
7. Geographic consideration
Operations
Strategy
Information
Systems
Structure
Management
Technology Helps . . . .
Improve
Efficiency
Change the
way
Organization
Communicate
Keeping
Organization
Fully Organize
Increasing
Collaboration
Enable
Remote
Working
At the end of the day, technology is just a tool, and
like all other tools, it can have positive or negative
effects on the work culture. It is important, however,
that organizations have a clear roadmap for
navigating current and emerging technology in the
workplace, especially as millennial, who have grown
up with technology, start to become the
majority. Positive reinforcement can go a long way
in promoting the right use of technology at work.
Habits that encourage collaboration and efficiency
should be promoted.
THANK YOU