OER for a Post Graduate Programme in HRM

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Module 1 :
Principles of Management

Module Content Map

Topic 6 : Designing the organization

Characteristics | Steps in organizational designing | Key points & Activity

Back to Topic 5 : What is organization? | Go to Topic 7: Organization Structure

Steps in organizational designing

A basic consideration in the design of organizations is dividing work into reasonable tasks (differentiation) while giving simultaneous attention to coordinating these activities and unifying their results into a meaningful whole (integration). Following steps are involved in this process:

Identification of vision and objectives for the organization to be designed.

In organizational design an in depth understanding of the vision and objectives of the organization to be designed is of utmost importance. Organization framework may vary in accordance with the objectives of the organization. For example a Manufacturing company and a Charitable Trust cannot have same organizational structure.

Identification internal and external factors that are likely to impact the organization

Internal and external environments can exert influence over the organization structure. Therefore the design required to be compatible to them.

Listing and detailing of all the works with relation to the objectives of the organization

Works for the realization of the objectives are the real basic unit of organizational function. Therefore a detailed listing of works anticipated for the realization of the objectives of the organization is very important to start the designing process.

Logical linking of works to activities that can be assigned to a unit/unit head of the organization

When logically connected works are grouped together we will get meaningful activities. For example, in a Food Processing Company, packing of the processed food is an activity. This activity involves works like filling in packets, sealing the packet, and stamping the packing date on the packet etc.

Logical grouping of activities called departmentalization

Departmentalization is the process of dividing the organization into meaningful subunits that carry out activities that are grouped together logically. It is the real division of labour.

Draw up Unity of Command

This is the process of setting up a mechanism to coordinate the work of members into a unified whole by establishing authority/ responsibility relationships. In this step of designing the line of authority will be defined clearly.

Identification of performance appraisal systems

Performance appraisal is very important to ensure that the organization is functioning in accordance with the objectives. The performance appraisal systems may vary in accordance with the nature of the organization structure. Therefore selection of a proper appraisal system along with the organization designing is very important.