Which of the following factors influence the process of organizational design?

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A well defined job will make the job interesting and satisfying for the employee. The result is increased performance and productivity. If a job fails to appear compelling or interesting and leads to employee dissatisfaction, it means the job has to be redesigned based upon the feedback from the employees.

Broadly speaking the various factors that affect a job design can classified under three heads. They are:

  1. Organizational Factors
  2. Environmental Factors
  3. Behavioural Factors
  1. Organizational Factors

    Organizational factors that affect job design can be work nature or characteristics, work flow, organizational practices and ergonomics.

  2. Environmental Factors

    Environmental factors affect the job design to a considerable extent. These factors include both the internal as well as external factors. They include factors like employee skills and abilities, their availability, and their socio economic and cultural prospects.

  3. Behavioural Factors

    Behavioural factors or human factors are those that pertain to the human need and that need to be satisfied for ensuring productivity at workplace. They include the elements like autonomy, diversity, feedback etc. A brief explanation of some is given below:


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Which of the following factors influence the process of organizational design?

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The article is Written By “Prachi Juneja” and Reviewed By Management Study Guide Content Team. MSG Content Team comprises experienced Faculty Member, Professionals and Subject Matter Experts. We are a ISO 2001:2015 Certified Education Provider. To Know more, click on About Us. The use of this material is free for learning and education purpose. Please reference authorship of content used, including link(s) to ManagementStudyGuide.com and the content page url.


 

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Factors Affecting Organization Structure

Organization structure is designed keeping in view the following factors:

1.    Strategy:

 

Strategy determines a course of action to direct various organizational activities. It makes plans to co-ordinate human and physical resources to work towards a common objective. Strategy is pre-requisite to organization structure and also follows it. The relationship between strategy and organization structure is depicted as follows:

Which of the following factors influence the process of organizational design?

Strategies to diversify product lines or markets require decentralized transition as decision-making is done at wider level and strategies for organizations working in stable environment. Where managers do not diversify their operations, require a centralized organization.

2.    Technology :

The technology for manufacturing goods and services also affects the organization stricture.

In case of mass production technology, mechanistic organization structure is more appropriate, while in case of continuous production or small scale production technology, the appropriate from is organic structure. This is because mass production technologies involve standardization and specialization of work activities and continuous or unit production technologies require low levels of standardization and specialization.

3.    People:

Organization structure defines work, groups it into departments and appoints people to run those departments. People at different jobs must possess the skill, knowledge and efficiency to accomplish the related tasks.

4.    Tasks :

Activities performed by people who transform organizational plans into reality are known as tasks. Various task characteristics are:

(a)    Skill variety:

 

It is the extent to which creativity and variety of skills and talents are required to do a task.

People with high degree of task varieties (for example, a dress designer ) perform tasks that increase their intellectual ability and give them high job satisfaction.

(b)    Task identity:

 

Whether to produce a product in whole or in parts determines its task identity. When a product is produced as a whole, it has greater task identity.

People performing tasks with high task identity y (for example, a computer programmer) perform various job functions related to that task from beginning to the end, derive job satisfaction out  of their work and feel motivated to repeat those tasks.

(c)    Task significance:

The importance of task affecting the well-being or lives of people working inside and outside the organization determines significance of the task.

People performing tasks with high task significance, i.e., tasks which positively affect the well-being and safety of others (for example, a traffic police inspector), feel satisfied with their job performance and perform work of high quality and esteem.

(d)    Autonomy:

    

Whether or not an individual plans the task on his own determines autonomy of 
     the task.

 It determines the extent to which a person enjoys t freedom of performing various  
 Job activities and determines the steps or procedures to carry them out. People who are responsible for all the functions and schedules related to a job (for example, a project manager) hold accountability for that job and enjoy greater autonomy with respect to that task and derive greater job satisfaction.

(e)    Feedback:

It is the information that people receive about successful completion of their task.

5. Decisions:
Questions like who makes decisions-top managers or lower level managers, how information flows in the organization so that decision-making is facilitated, affect the organization structure.

Centralized decision-making powers give rise to mechanistic structures and decentralized decision-making processed give rise to organic or behavioral structures.

6. Informal organization:

Informal organizations are and outgrowth of formal organizations. Social and cultural values, religious beliefs and personal likes and dislikes of members which form informal groups cannot be overlooked by management.

7. Size:

A group known as Aston Group conducted research on firms of different sizes and concluded that as firms increase in size, the need for job specialization, standardization and decentralization also increases and organizations are structured accordingly.

8. Environment:

Organization structure cannot ignore the effects of environment. Organizations must adapt to the environment, respond to incremental opportunities and satisfy various external parties such as customers, suppliers, layout unions etc.

In case of stable environment where people perform routine and specialized jobs, which do not change frequently, a closed or mechanistic organization structure is appropriate.

9. Managerial perceptions:

Organizations where top managers perceive their subordinated as active, dynamic and talented entrepreneurs, prefer organic form of structure, If they hold negative opinion about their subordinates, they prefer mechanistic organization structure.

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What are the factors influencing organization design?

There are five factors that greatly impact organizational design: strategy, environment, technology, size and life cycle, and culture.

What are the 4 types of organizational design?

The four types of organizational structures are functional, multi-divisional, flat, and matrix structures. Others include circular, team-based, and network structures.

What are the 4 importance of organizational design?

Dealing with Contingencies, 2. Competitive Advantage, 3. Diversity in Workforce, 4. Innovation and Efficiency!

What are the 3 common organizational designs?

There are three main types of organizational structure: functional structure, divisional structure and a blend of the two, called matrix structure.