Organizational design is a methodology that identifies any dysfunctional aspect of workflow, structures, procedures, and systems. It then realigns them in a way that they fit ongoing business realities or goals, later developing plans to put the new changes in place. This process deals with making improvements on both the workforce and technical side of a business organization. On the other hand, organizational development is a planned and organization-wide effort aimed at increasing the health and effectiveness of an organization. It is managed from the organizations top and takes place in the business processes with the use of behavior science knowledge.
For most business organizations, the aim of organizational design is to have improved results with respect to internal operations, customer service and profitability. It also aims at having employees that are committed to the business as well as empowered. Its hallmark involves a holistic and comprehensive approach towards improvements in the organization that have to do with all aspects of a companys life. By incorporating organization design, any business can achieve outstanding customer service, minimized operating costs as well as improved cycle time and efficiency. In addition, the organization acquires a culture of engaged and committed employees together with a clear strategy on how the business can be managed so that it grows.
When talking about design, what is meant is the integration of the labor force with technology, systems and core business processes. An organization that is well-designed makes sure that its form matches its strategy or purpose while at the same time dealing with the challenges presented by business realities. This design increases the chances that the collective efforts applied by people will be succeed. As businesses expand and the emerging from the external environment become even more complicated, something happens. Systems and structures that initially worked change and become barriers to customer service, efficiency, financial profitability and workers morale.
Organizational human resource activities may focus on things like employee relations, performance management, salaries and benefits, and other related functions. However, organizational development also does play a role in HR. human resource managers can assume crucial and innovative roles in when it comes to leading the business in a way that focuses on its culture. They can also come up with approaches that will align human resource strategies with that particular culture.
There are several crucial foundation areas that human resource managers can focus on so as to provide the obligatory leadership with respect to the organizations culture. They include the cultures underlying principles, the cultural philosophy of the organization, its conceptual framework with respect to its culture, and operational approach towards the organizations culture. While some of these elements may exist either in part or in whole, they are vital to structure of the business culture.
The economic crisis and globalization has forced businesses to change the manner in which they operate and re-think their strategies. However, instead of looking at the big picture, businesses are shifting their focus from markets to products or competitors. This can lead to many piecemeal change ingenuities as opposed to focusing on the inclusive organizational design.
An organization is a common platform in which people work together with the aim of making a profit and earning a living. Each organization has its own one-of-a-kind way of working that contributes to its culture. Its ideologies, beliefs, values and principles are what make up its culture. This culture controls the manner in which workers go about their businesses among themselves and with individuals outside the organizations.
Organizational culture is important because it offers guidance on the way workers interact in an organization. When this culture is healthy, it encourages employees to remain motivated and show loyalty to the management. It is also important because it spurs healthy competition within the organization. Workers will put sufficient effort to perform better than their colleagues in a way that makes them be appreciated by the management and also get recognition. The workplace culture is what actually motivates them to be productive.
Several basic types of organization culture can be applied in a business. All in all, it is worth bearing in mind that no single type is better when compared to others. Different types are suitable for various kinds of workplaces, different types of organizations, and different corporate philosophies. When an individual is planning to start a business, among the first things he or she needs to decide is the type of organizational culture to adopt. This should be put into careful consideration as the chosen culture will influence decisions made on how the business is structured as well as how employees interact with each other.
A collaborative organizational culture is one in which employees are encouraged to collaborate on various projects, irrespective of whether these projects are within their departments or outside. In such a work environment, teamwork is of great importance. The hired employees must be willing and ready to co-operate in the course of their work days, with individual assignments and projects being quite rare. A collaborative culture can be applied in various different kinds of organizations. It is particularly recommended for businesses that require many different skills to be combined together, good examples being advertising and marketing agencies.
A competitive organization culture is the exact opposite of the co-operative culture. It pits workers against one another whereby they are required to compete on a day-to-day basis. In organizations that apply this type of culture, goal setting is important and often leads to incentives like bonuses. Some of these organizations can also utilize commissions so as to encourage workers to improve their productivity. Among the notable features of competitive organization culture is that it puts emphasis on success. This emphasis is not just placed on the individual success of every team member. It is also placed on the success of the organization as a whole. Notable businesses that are known to thrive in this type of organization culture include sales-oriented companies. As it can be seen from its description, this culture is the exact opposite of the cooperative organization.
Alvesson, M., 2012. Understanding organizational culture. Sage.
Cummings, T.G. and Worley, C.G., 2014. Organization development and change. Cengage learning.
Schmiedel, T., Vom Brocke, J. and Recker, J., 2014. Development and validation of an instrument to measure organizational cultures support of business process management. Information & Management, 51(1), pp.43-56.
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