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Basic Concepts Of Organization Design

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Basic Approach to Organization Design
Organizing is basically about who does what. “It means defining responsibilities, building structures and developing relationships”(Boutros & Purdie, 2013). The main element in organization is “people” what they do & how they work together.
When organizing a new organization structure, you must be advisable on:
• what the organization is there to do
• circumstance which the activities are carried out (technology, rate of growth or change, management/style, outside environment)
• requirements to achieve the aim of the organization
• group related activities
• establish relationships that should exist in the organization (vertically/within functions-horizontally/between functions)
• ensuring that everyone in the organization understands their responsibilities, authority, structure, relationships.
Boutros & Purdie, 2013
The process of structuring an organization is akin to building something with a box of bricks. The bricks are the key activities or groups. First thing to do is define what these bricks are. Then this is fitted together to build up a structure. There will be several ways which these bricks can be grouped together. “Experimenting with alternative arrangements will help decide which pattern looks best. These could be an outcome of two to three structures” (Boutros & Purdie, 2013).
These constant changes cause organizational problems within the structure.
Formal and informal organizations: “A formal organization can be a

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