OD/U1 Topic 2 Organizational Development as a Profession and evolving field of Practice
Organizational structure is the driving force behind the performance and growth of the organization. For an organization to achieve success and competitive advantage, it is highly important that there should be complete alignment between the organizational structure and the strategic goals of the organization. A properly coordinated organizational structure improves the flow of information and communication within the organisation.
Generally, changes in different aspects like political, cultural, competitive, market, technologies, business requirements, resources, regulations, business goals, organic growth, leadership changes, mergers and acquisitions, etc. may trigger the need to redesign the structure of the organization.
The organization’s structure should fit properly with the changing needs and objectives of the organization, and the market conditions as well, to maintain its efficiency in the long run.
An obsolete organizational structure results in:
- Inefficient organization
- Lack of both, inter as well as intra units/ departmental, coordination
- Ambiguous role definition
- Emergence of conflicts in the workplace
- Disrupted or elongated flow of work and processes
- Multiple superior/ supervisor issues
- Creation of various extra organizational committees, departments, and units
- Improper utilization of resources
- Employee dissatisfaction
- High turnover rates
Therefore, for an organization it is very important to revise and update its structure to maintain its purpose and functionality. Further, redesigning organizational structure helps in improving internal processes and employee engagement, thereby, favourably affecting the financial performance and competitive position of the organization.
Organisational structure redesigning involves alignment of the organizational structure to the business strategies by providing appropriately redesigned model for the existing structure, implementing the new structure, and necessary strategies for downsizing or related changes in the structure.
An HR Consulting Firm can diligently perform the task of analyzing and redesigning the structure of the organisation in accordance with the strategic goals, objectives and mission of the organization.
While performing the task of organizational structuring, HR Consultants should consider following issues:
- The purpose, objectives, goals and strategies of the organization or the specific units
- The navigation of work flow and processes to be simplified and standardised
- The needs, requirements and expectations of the clients are met with
- Maintaining effective flow of communication within the organization
- Enough room for employment development and career progression for the employees
- Efficient as well as effective utilization of the resources available for the organization
- Complying with the legal formalities
- Creating a structure which creates a motivating and satisfying environment for the employees
- Understanding the market trends and industry norms/ best practices
The process of organizational structuring involves following comprehensive stages:
- Assessment of the organization’s structure, as it exists in the current situation and as it had existed before any of the previous changes or revisions.
- Identification of the root causes of organizational performance related issues.
- The analysis is them examined in relation to the organizational culture, strategic goals and business objectives. Again, both the existing factors as well as previous factors are considered here. Future, future strategic goals and objectives are also taken into consideration so that the revised organizational structure caters to the current as well as the future needs of the organization.
- Preparation of the revised or updated organizational structure.
- Implementation of the structural changes keeping in mind that the implementation should bring in least distraction to the organizations operation.
- An evaluation is then carried out regarding the efficiency and fluency brought in by the changed organizational structure.
Thus, HR Consultants can facilitate in the development and designing of an effective organizational structure which optimizes the resource utilization and promotes growth of the organization.