Decentralization
Authority to make decisions should be delegated as close to the
action as possible.
Optimize the structure
Develop an ideal organization by all means, but also remember
that it may have to be modified to fit in the particular skills and
abilities of key individuals.
Relevance to organizational needs
The organization has to be developed to meet the needs of its
situation. In today’s conditions of turbulence and change this
inevitably means a tendency towards more decentralized and
flexible structures, with greater responsibility given to individ-
uals and an extension of the use of task forces and project teams
to deal with opportunities or threats. This implies an informal,
non-bureaucratic, organic approach to organization design – the
form of the organization will follow its function, not the other
way around.
The organization may be largely based on multi-disciplinary
project teams, as in a matrix organization, or greater emphasis
will be placed on ensuring that flows of work involved in the key
business processes are properly catered for rather than the
creation of a traditional formal and hierarchical structure.
THE PROCESS OF ORGANIZATION
DESIGNThe process of organization design is to:
■ Define what the organization exists to do – its purpose and
objectives.
■ Analyse and identify the processes, activities or tasks
required to do it and, as appropriate, the flow of decision-
making and work throughout the organization.
■ Allocate related activities to teams and individual jobholders
as appropriate.
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