what is Organizational Design & Structure
Organizational design, also called organizational structure, is a step-by-step method that identifies aspects of workflow, production and systems within a company or organization. This method allows businesses to re-evaluate their practices and find better and more effective ways to achieve the company’s goals.
Organizational design is determined by the strategic direction of the company, a.k.a. the vision, mission, and goals of the company. These lead to strategies that the company competes on, which are enabled through the organizational design.
What are the different types of organizational structures?
- Hierarchical structure: In a hierarchical organizational structure, employees are grouped and assigned a supervisor. It is the most common type of organizational structure.
- Functional structure: In a functional structure, the organization is divided into groups by roles, responsibilities or specialties