Foundations Of Organizational Design Essays Examples

Introduction

Organizational design can be generally described as the way in which work is organized in a company. Design takes care of the process flow, systems of the organization, its structure and organizational objectives. When proposed designs do not work, organizations undertake initiatives to modify how things are done in the organization. Such ventures constitute organizational redesign as highlighted in the case of Killer App Software Organization.

Proposed Design

Since Killer App Software Organization is an Information Technology company their process flow involves handling many projects and with frequent modifications (and customization demands) from their clients. The design therefore must be one in which information flow is quick and comparatively faster decision making model. So a horizontal decision model is required to handle the expected numerous adjustments required during product development. The second consideration in identifying the design is the need for teams to work beyond their own sections or departments. A cross-functional team model of work organization is recommended. Having made the two critical considerations, the proposed design to be adopted by Killer App Software Limited is a Matrix Design.
One of the most common issues that come with Matrix Design is the reporting structure dilemma especially for less-experienced members of staff. Since the work is organized and done by cross-functional teams, the design comes with many dotted reports unlike vertical or bureaucratic designs. The problem however can be handled by proper communication of responsibilities and objectives. Cross-functional teams often result in employees having to report to more than one manager. The dotted-line kind of reports is a common phenomenon as opposed to traditional direct and vertical reports. Personal responsibilities of each staff need to be clearly communicated to avoid lack of commitment. As a matter of fact, the team leader needs to ensure absolute ownership and commitment to the goals and objectives of the product (or project) assigned. The second issue that affects organizations that operate a matrix design is the misplacement of priorities. Misplaced priorities are as a result of team leaders not taking ownership as well as possible competing interests from the members.
The matrix structure is advantageous to the customers. Once implemented, the customers are likely to experience reduced lead times, efficient change management and improved client engagement. The main reason that supports the improved customer relationship management is the horizontal decision model that comes with the matrix system. As a result of the improved efficiency, the stakeholders of Killer App Software Limited are likely to achieve improved revenues due to the reduced lead times, efficient cost management and better managed clients. In this new structure, information flow and sharing is increased. This results in better employee skills exchange and improved capabilities. The span of knowledge of the employees is broadened since teams comprise members from different sections of the organization.
In order to manage the issues that come with the redesign, the company needs to put in place a number of measures to ensure successful implementation. To begin with, there needs to be training on the proposed structures and employees need to understand the characteristics of the new system and the deviation from the old one. Secondly, the implementation needs to be gradual. Gradual implementation gives the company more time to address issues that may arise from the change. Finally, the management needs to win the support of the employees in the proposed change. The change needs to be owned by all.

References

Baligh, H. (2011) Organization Structures: Theory and Design, Analysis and Prescription. Springer
Balogun, J. and Johnson, G. (2004) Organizational restructuring and middle manager sense making. The Academy of Management Journal, 47(4), 530-549.
Galbraith, J. (2008) Designing Matrix Organizations that Actually Work: How IBM, Procter & Gamble and Others Design for Success. Jossey Bass.