Thursday, 5 May 2022

What are the types of organizational designs?

Organization design refers to the model and framework that an organization uses to analyze the current situation, visualize the future state, make strategies for the success of the business, and many more. Organization design should be unique and consider the internal strength, weaknesses, competence, leadership style, management, and many more. Organization design is engaged when managers develop or change an organization's structure. There are several types of organizational designs but every organizational design has a different requirement. Organization design depends on the nature of the business and the requirement of the business. Mainly organization design falls into five categories that are following. Functional organizational design Geographic organizational design Product-oriented organizational design Market organization design Matrix organizational design Functional organization design Functional organization design refers to implementing functions according to their business sizes. Business can divide their function into a different departments like marketing, research and information, financial, sales, revenue, legal department, and many more. These departments can distribute their work and also separate board-level department and sub-department. These structures also help to make an internal chain that will help control all business activities and all actions are under observation. The size of each department is depending on the business size. Some organization can merge their two similar departments for better work that support each other functions as well. Functional departments’ structure is best for coordination of work in business. Each department works for achieving a common goal. The delegation of power is a downside because strict framework. It will also help for mutual understanding and better work conditions. Geographical organizational design This organizational design is not required for local businesses. It is required when the business start to extend beyond its geographical boundaries that time business required geographical organization design for better operation of the business. Several designs can be followed by businesses like centralization of business, branches method, and many more. Geographical design is important because recently the use of international business increased. The geographical organizational design depends on the nature of the business and is possible to recognize, even nationalization its scope. Business needs to consider the region of the nation also. Several factors also matter for geographical industries like legal environment, cultural norms, and many more. Several multinational companies also subsidiaries in many companies, they often recognize the trade-off between centralized control and the complexity of the different environments. Product organizational design model This model completely relies on the production itself. The product design model adopts by the manufacturing companies completely induces in manufacturing of different items for domestic products, electric appliances, manufacturing for international, and many more. This design offers a good opportunity for beginners people with good business ideas. In today’s world, the competition is very high among several products. Many companies produce different items in one company so they can divide their teams according to products and make different marketing teams, promotion, and sales and distribution departments, this will help to control all the activity easily according to their convenience. Market organizational design model Market-oriented organization models often make the market for their product and analyze the customer's demand and try to provide their demanded products. This type of design model is adopted by the company, which serves a small number of consumers, who can give business and need to be profitable for them also. This type of business is often dedicated to manufacturing single-line products. There are several companies adopted like BMW, Ferrari, Ducati, and many more. These companies only manufacture for a few consumers who give them good revenue. The less consumer base gives a good opportunity for the seller to build good relationships with their consumers. They can also appreciate by the consumer for customized products. This model is known for the best quality assurance to clients and the growth of the business depends on heavy advertisement and promotion; customize luxury, brand, and many more. Matrix organizational design Matrix design refers to when there is a high demand from consumers and the prime object is to assure efficiency and bureaucracy. This structure is used when many are employed for implementation and the client wants to organize them for the successful implementation of their plans, for example, interior design, construction, civil engineers, and many more. Generally, under this model employees reports to two bosses one is just superior to the employee and another one is the project manager. This can raise the role of conflict sometimes in business like authority-related issues. An employee can also stick between two authorities because of distinct instructions. Bottom There are several organizational design models, but businesses do not stick to one model for all types of business. They can adopt different models according to their business and one business can adopt two different modes for their business. I hope this piece of information will help you for adopting one and more models according to their business.

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