What is Organization Design?

Organization design is about how work gets done. It 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.

Organization design 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 in organization design 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.

A misaligned spine adversely affects all other parts of the corporation and is a significant barrier to optimal performance. It wastes financial and human resources and creates obstacles to employees doing their work.

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.

Organization design is the heart and soul of the company; get it right and you unleash tremendous potential. Capelle Associates Inc. offers strategic organization design analysis, planning and implementation.

home         français        contact us         site map