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Organizational Design

Organizational design refers to both a process of fitting design variables to the corporate strategy and the actual design of the organization. Common design variables include the organizational hierarchy and structure, authority relationships, extent and capabilities of information and communication systems, and reward systems. Organizational design involves determining division of labor for systems and processes including departmentalization, supervision and command relationships, authority and responsibility for the supervisory roles, spans of control and number or reporting relationships, and technology support and infrastructure.


An organization design determines the nature and flow of work, as well as the ways in which employees interact with one another.

In general, organization design is a formal, guided process for integrating the people, information and technology of an organization. It is used to match the form of the organization as closely as possible to the purpose(s) the organization seeks to achieve. Through the design process, organizations act to improve the probability that the collective efforts of members will be successful.

from See http://www.inovus.com/organiza.htm




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