Organizational Design Essay example

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Organizational Design

Organizational design and structure are the basic pillars of success within any type of organization. There are many categories that fall within the scope of organizational design and structure. Topics such as the importance of shared information, the role of stakeholders in for-profit versus non-profit organizations, the advantages and disadvantages of employee development, and the methods for evaluating effectiveness and outsourcing are all essential elements for managers to consider when establishing organizational design and structure.
In a learning organization the culture is one that strives to empower individuals to succeed for the sake of the organization. In order for this success to occur, it is essential the flow of information be open with limited to no barriers although guidelines and ground rules may exist. Information is shared to impart knowledge at all levels. Aliei, Ashrafi, & Aghayan (2011), noted that “knowledge as both an individual and organizational resource as the creation of such contributes to the organizational success in the form of new processes and products” (p. 343). “To create a knowledge sharing culture you need to encourage people to work together more effectively, to collaborate and to share - ultimately to make organizational knowledge more productive” (Aliei et al., 2011, p.345). Thus in a learning organization, the design of the organization is more organic in nature. “Less emphasis is placed on vertical hierarchy and silo-like departmental functions, while collaboration, teamwork and a flattened, horizontal workflow is encouraged” (Daft, 2013, p.32). In contrast, efficient performance organizations frequently function in more of mechanistic design.
As noted in Daft (2013), organizations of this nature frequently operate under standard rules and procedures with communication most often flowing top to bottom (p.30). As opposed to the organic, more free-flowing nature of the learning organization there is a definite hierarchy established in the efficient performance organization that is seen as necessary to achieve the predetermined tasks, outcomes, and goals of the organization while keeping the use of resources as low as possible. While employees in the efficient performance organization may be viewed as a resource/expenditure in terms of wages, benefits, etc. the information and knowledge they contribute of their own free will is not routinely viewed as a significant resource. In a learning organization all elements are related such as the structure, tasks, strategy, and culture; because all members are committed to the success of the organization. The efficiency is the total amount of assets needed to accomplish the organizations goals.
Management responsibilities to stakeholders in nonprofit and for profit organizations differ greatly as the goals and objectives of the two types of organizations differ greatly. Daft (2013) noted the significant difference in management responsibilities lies in the fact that those in for profit organization focus their efforts at increasing profits for the organization; while managers in nonprofit organizations are charged with a more difficult task. As those seeking to improve the lives of others, make a difference in the environment, or other humanitarian efforts; nonprofit organizations most often do not have the conventional monetary bottom line and managers in these organizations are faced with a challenge to prove the organization’s worth. Additionally, non-profit organizations must demonstrate all funding is utilized within the predefined goals, objectives, and missions of the organization with no profit at fiscal year-end.
In order to fulfill the responsibilities, managers must know who makes up the collective body of stakeholders. A stakeholder is defined as a person, group, or organization that has interest or concern in an organization and can affect or be affected by the