What is Organization Design?

Organization design examines the link between the goals of the corporation and how managers and staff are working to achieve those objectives. Strategically examining organization design can identify strengths and weaknesses in a corporation’s performance.

It is made up of the employee factors that effect productivity. This includes the layers of management, work delegation, and employee compensation. Assessing the requirements of positions and the capability of employees allows executives to predict the probability that an individual employee in a particular position will be able to perform the required work with the skill, knowledge, and competence that is needed. Getting the right employee in the right position leads to greater employee satisfaction, improved customer relations and increased productivity.

A critical factor is the relationship between managers and their employees. This relationship is fundamental to a corporation’s success. The alignment of managers and employees is much like the spine of the corporation. A corporation that uses strategic organization design to create a well-aligned “spine” can maximize employee potential and productivity. A well-aligned spine is effective and efficient, and provides the flexibility the corporation needs to respond to today’s rapidly changing marketplace. In these times of economic uncertainty, global markets and rapidly changing technology, that is a vital competitive advantage.

Two of the most common causes of misalignment are "compressions" and "gaps". When managers and their direct reports are too close in the type of work they do and in their capability to do it, the spine becomes compressed. Managers will micro-manage staff. Employees are unable to use to their full capabilities and can lose initiative. The opposite happens when managers and their direct reports are too far apart in the type of work they do and their capability to do it. When this happens gaps occur. Without the direction and supervision of management, employees lose connection to the company and its mandate.

Capelle Associates Inc. offers strategic analysis, planning and implementation. Benefits of this approach include:

Improved Employee Satisfaction
Effective organization design creates a culture of accountability. Employees are well-managed and understand their accountabilities and authorities, and the goals of the corporation.

Improved Customer Satisfaction
Employees are better able to deliver high quality services and products, and to meet customer expectations.

Improved Financial Performance
When a corporation’s employees, productivity and goals are properly aligned, there is greater productivity and less waste.

Improved Competitive Advantage
Creates a well-aligned, flexible and productive corporation that is able to meet the demands of a shifting market place. Organization design is unique to each corporation. It requires long-term commitment and cannot be easily copied.

Significant Return on Investment
Investing in improving organization design can lead to significant returns for any corporation in any sector.

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