Organizational

Design for
Performance
Goutham

What is Organizational
Design?
The effectiveness of an organization depends in part on its
organizational structure:
Clarification of authority, responsibility, reporting lines, and
performance standards among individuals at each level of the
organization.
It is also true that effective strategy deployment is dependent
upon, and tends to shape, organizational structure.
Because the organizational structure must be aligned with and
support the accomplishment of strategic initiatives.
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In this rapidly changing environments characteristic of

modern organizations have to build flexibility into their
organization structures.

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Video link:
https://www.youtube.com/watch?
v=ppXbtMAafik&ab_channel=FrankfurtSchoolofFinance&Management

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Factors:
Several factors having to do with the context of the organization
affect how work is organized. They include the following:
Operational and organizational guidelines: Standard
practices that have developed over the firms history often
dictate how an organization organizes and operates.
Management style: The management team operates in a
manner unique to a given organization.
For example, management style might be formal or informal, or
democratic or autocratic.
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Customer influences: Customers, particularly governmental

agencies, may require formal specifications or administrative
controls. Thus, the organization needs to understand and respond
to these requirements.
Size: Large organizations have the ability to maintain formal
systems and records, whereas smaller ones may not.
Diversity and complexity of product line: An organization
suitable for the manufacture of a small number of highly
sophisticated products may differ dramatically from an
organization that produces a high volume of standard goods.

Stability of the product line: Stable product lines generate

economies of scale that influence supervision, corrective action,
and other quality-related issues. Frequent changes in products
necessitate more control and commensurate changes to the
quality system.
Financial stability: Quality managers need to recognize that
their efforts must fit within the overall budget of the firm.
Availability of personnel: The lack of certain skills may
require other personnel, such as supervisors, to assume duties
they ordinarily would not be assigned.
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Questions?

References:

Evans, J. R., Lindsay, W. M. (2012). Managing for Quality and Performance Excellence
(9th Edition) [Texidium version]. Retrieved from http://texidium.com

To grow, our companies have to become much more flexible, much

lighter on their feet. You cant be light on your feet if youre carrying
a lot of baggage.
-Christian Koffman