Discuss the ideas that are essential while designing an organization.
Organizational design can be defined as the process of establishing a hierarchy within an organization or a company. During the designing process, there are various elements deemed essential to guarantee its success. These ideas assist the management in creating the chain of command, company departments and the overall structure of the company.
Work specialization
Business leaders and managers should consider the specific duties and tasks involved in certain positions. Among the major elements of work, specialization is the allocation of tasks to different jobs and allocating certain employees in the positions. For instance, a worker in the assembly line can be assigned the task of putting the first two components together. Consequently, another task of assembling the remaining components can be assigned to another job position. Managers have a role in ensuring that tasks are evenly distributed to avoid overloading some employees. (Fjeldstad & Snow, 2018).
Centralization and decentralization
Centralization and decentralization determine whether decision making is made at various levels by employees or at the central level of the organization. For instance, the chief financial officer is responsible for making budget-related decisions. On the other hand, customer services are assigned to employees who interact with customers.
Formalization of elements
While large companies tend to formalize roles, small organizations have informal elements. Formalization of elements helps large organizations to assign various roles to the right employees. However, smaller companies tend to have informal elements because various tasks can be assigned to one job position.
Span of control
This idea involves considering the number of tasks allocated to a manager. As such, managing many employees may seem ineffective since a manager may experience challenges identifying problems as they arise. A span of three is used to indicate that for every three managers, nine employees can be managed.