Key Concepts of Organizational Design / Creativity, Innovation, and Organizational Design

Essay by rlundayUniversity, Master's August 2010

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Key Concepts of Organizational Design

Creativity, Innovation, and Organizational Design


Key Concepts of Organizational Design

An important part of organizational theory is organizational design. It is important to change management within the organization and shapes the organization's culture, leading toward the achievement of reaching its goals. Organizational design becomes more complex as the company experiences growth. In this paper, I will provide some key concepts of organizational design and its importance, assessing the relationships between strategy, structure, and process in organizations and the relationship between organization design and decision-making processes are analyzed. In the next section, I will describe the five best design choices and the characteristics, advantages, and disadvantages of various organizational structures.

Importance of Organizational Design Choices

One part of developing a strategy for a company is for an organizational design that fits the company's purpose, culture, and processes.

Organizational design has become a top priority because of increased competitive pressures and the use of information technology. Organizational design is important to its success, allowing an organization to plan for contingencies. For example, competitor that uses new technology in innovative ways. "Organizational design and change have important implications for a company's ability to deal with contingencies, achieve a competitive advantage, effectively manage diversity, and increase its efficiency and ability to innovate," (Jones, 2004, p. 12). Depending upon the design of the organizational structure that increases control over its environment, reflects how effective an organization will respond to certain factors in its environment. Because of the increasing pressure from consumers and competitors, it is becoming increasingly difficult to respond to the changing environment facing them. Organizational structure and culture are continually being developed by organizations...