Internal and External Changes
The design of an organization’s structure is critical to the increment of the efficiency of any organization’s operations. Organizations are constantly required to adjust to the various changes that occur in the dynamic business environment. Whenever such changes occur, it is important for an organization to modify its organizational structure to coincide with the requirements of the business environment. The six key elements of organizational design represent the critical aspects that an organization’s management can evaluate when choosing the right organizational structure to adapt to business environmental changes. These elements are applicable when an organization is adjusting to both internal and external environmental changes.
Departmentalization is one of the key elements of organizations design. This element facilitates the classification and pooling of skills so as to assign a group of employees with functions that match their skill set. There are two primary types of departmentalization commonly used by organizations. Product departmentalization enables an organization to create divisions that concentrate on a certain line of products. Functional departmentalization facilitates the delegation of duties so that employees can concentrate on various functional areas like marketing, production, and finance. An external environmental change that might require the organization to specialize…
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