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Success and failure in organizational design

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Success and failure in organizational design

  1. 1. BY R. NIVEDITHA RA1952001020006 SUCCESS AND FAILURE IN ORGANIZATION DESIGN
  2. 2.  Introduction  Approaches to OD  Success in Organization Design  Failure in Organization Design  Principles of OD
  3. 3.  Organizational design is a step-by-step methodology which identifies dysfunctional aspects of work flow, procedures, structures and systems, realigns them to fit current business realities/goals and then develops plans to implement the new changes. The process focuses on improving both the technical and people side of the business.  For most companies, the design process leads to a more effective organization design, significantly improved results (profitability, customer service, internal operations), and employees who are empowered and committed to the business.
  4. 4.  The functional structure groups positions into work units based on similar activities, skills, expertise, and resources  Managers in large companies may have difficulty keeping track of all their company's products and activities, specialized departments may develop. These departments are divided according to their organizational outputs.  The matrix structure combines functional specialization with the focus of divisional structure.  These cross‐functional teams are composed of members from different departments who work together as needed to solve problems and explore opportunities.  The network structure relies on other organizations to perform critical functions on a contractual basis
  5. 5.  Pre-design Workflow Post-design Workflow
  6. 6.  Build on your strengths  As Socrates, father of Western philosophy and arguably the original disruptor, said, “Know thyself.” Go ahead and acknowledge upfront that retooling your organization is a tough rock to tackle. Then, identify who you are,  Go beyond lines and boxes  Start by asking how the company’s unique strengths shape how people work and act. Balance that by asking where your company structure isn’t currently serving your business goals.  Know your roles Leaders can define technical roles and develop their teams' skills using Pluralsight IQ. First, measure your team's knowledge with skill assessments. Then, see how well a team member fits in a role by viewing the collection of skills needed for success.
  7. 7.  Rock your roles  When you identify employee’s strengths, you can align them to the projects and teams where they’ll be the most effective. You can balance the needed skills across teams in the right proportions, per Elon Musk.  You can also identify where teams and individuals need to grow, so you can seek out the development opportunities that will serve their needs and position the company for further success.  Support a culture of learning  Organizations that make professional development a high priority and provide a range of flexible training options mapped to business needs are the most successful at keeping their teams at peak performance and skill level.
  8. 8.  System and structural failures – the systems you have in place to get the job done are flawed, at best, fatal at worst. Systems failures in companies can have many causes, including a flawed development process, too many defects causing rising costs and overload or defects  Financial management failure – the accounting department does not properly track expenses and departments are overspending, thus cutting into the organisation’s profit margin. Too many businesses fail because of lack of financial viability or poor accounting procedures.
  9. 9.  Customer and marketing failure – you have a poor marketing plan and you have no idea who your niche client base really is. Without that certainty, you will make the wrong decisions regarding what to invest in, with often dire results.  Failure at the top – upper management isn’t making educated decisions, or members of upper management are simply making very bad decisions despite the resources they have available. Too many managers we work with are too operational in their outlook. This causes businesses to not be able to see the wood for the trees, and cannot see beyond the fire-fighting duties of short-termism.
  10. 10.  Declare amnesty for the past  Design with “DNA  Fix the structure last, not first  Make the most of top talent  Focus on what you can control  Promote accountability.  Benchmark sparingly, if at all  Let the “lines and boxes” fit your company’s purpose  Accentuate the informal  Build on your strengths

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