Organizational Structure and Design

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Organizational Structure and Design

"Strategy follows structure, Structure shapes strategy"

An organizational structure is a system which defines the scope of individual or position's authority and accountability within an organization. An organization will be in best position to implement its business plans when the design reflects its strategy, but not the internal politics.

Strategy supported structure defines how all the organization elements such as people, polices, procedures, culture, technology work together. The organisational design helps in hierarchical arrangement of lines of authority, communications and duties of an organization.

A structure depends on the organization's vision and strategy enabling its growth. In a centralized structure, the top layer of management has most of the decision making power and has tight control over departments and divisions. In a decentralized structure, the decision making power is distributed and the departments and divisions may have different degrees of independence. Thus, an organisation should decide its structure after perfect due diligence.

Organizational design regulates how the rolesand responsibilities are assigned, controlled, and coordinated, and how information flows between the different levels of the organisation.Organizational structure can help in the following ways:

  • Direct employees by giving clear guidelines to better understand their role, rights and responsibilities
  • Divide the organization and bind employees into teams, functions, departments
  • Find the redundant roles in the organization
  • Identify the overlapping roles
  • Help in workforce planning

If an organization intends to change its strategy, it must be ready to change its structure without which the structure pulls the organization back to its old strategy. Our highly diversified experience in creating organizational structure, and defining strategies for clients can help you create organic growth plans, in-organic performance, and reduce costs.

Our key focus while working with clients is on linking the organization to strategy, driving accountability, and ability to be agile in nature. A manufacturing company seeking high geographical business expansions and major revenue growth, a new organizational design supported by strategy transformed the sales and operations model, eliminating non-value-added activities and overlapping roles in organization. Company expanded its operations to 5 new geographical locations with 15% increase in revenue.

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