What are the elements of organizational design?

Management teams consider the unique elements of organizational design in order to craft the best
plan for their company. There are six elements of organizational design that can affect how
employees and managers interact and divide primary duties. The six elements are:

1. Work specialization

Work specialization is a process that assigns each professional to a specific task. Because the
management of the company is clear in what they expect from their employees, each one can
focus on their task, gaining special skills and experience that can help them improve.When using
work specialization, management professionals often assign tasks to the employee who is best
suited for it. This means the professional's work history, skill set and education align with the
task. Work specialization allows an employer to focus less on training and redirect its energy and
resources to other company needs.For example, factory and warehouse companies use work
specialization for assembly line workers. In a factory that specializes in making gift baskets, one
professional may arrange the decorative paper in the basket while another professional adds
fruits to the basket.

2. Departmentalization and compartments

Departments and compartments are teams of professionals within a larger company. This
component of organizational design allows each compartment or department to focus on a
specific task the professionals in each group work together to achieve.Compartments refer to
teams of professionals who each are from a different career path and specialty. These
professionals each use their own talents to help complete the project. For example, when a film
company wants to produce a new movie, they hire a director, a casting agent, a costume
designer and other professionals to create the film.Departments refer to groups of professionals
of a similar skill set within a company. Each of these professionals usually has the same primary
duties and uses similar practices to meet the same goal. For example, a company's accounting
department all work to manage the company's finances and taxation records using the same
methodologies and practices.

3. Formalization of elements

Formalization specifies the relationships and roles within a company. Larger companies often have a
more distinct formalization of primary roles than smaller companies. This is because employees
may fill multiple roles in a smaller company. For example, in a neighborhood pizza shop, the
manager may be responsible for food preparations besides their leadership
responsibilities.Formalization of elements also can clarify workplace rules, such as how many
breaks an employee can take during their shift. Because these elements can shape workplace
culture, it's important to consider them carefully when crafting a company's organizational
design plan.

4. Centralization and decentralization

Centralization and decentralization refer to the senior levels of employees who can influence
company decisions. Each company rests somewhere on a scale of centralization.For example,
 with centralization, some companies give the senior level of professionals complete influence
over the decision-making process, while with decentralization, a company may seek the input of
lower-level employees as well. Allowing more employees to influence company practices can
give employees a stronger sense of pride and satisfaction in their work. However, allowing only
senior staff members to share their input can be more time-effective.Related: Decision-Making
Methods for the Workplace

5. Span of control

A leader can be more successful when they manage an appropriate amount of employees. Span of
control is an element of organizational design that accounts for the number of people a leader
supervises and the tasks they handle. For example, the acquisitions department of a publishing
company is likely to have a large volume of incoming book pitches. If the department employs
many readers to accommodate this demand, the department may need multiple managers to
monitor and guide the readers' work.Clarifying a specific span of control can ensure managers
can handle all their tasks while overseeing daily operations and monitoring the progress of their
designated team members. The ideal span of control can depend on a variety of factors
including:

 Workplace size

 Manager abilities

 Company goals

 Company structure

 Leadership style

Related: 10 Common Leadership Styles (Plus How To Find Your Own)

6. Chain of command

The chain of command of a company describes the business' hierarchy and can affect workplace
culture and the efficiency of work production. An organizational chart can visually portray each
employee's place in the company hierarchy, and the company may have a strict or flexible chain
of command.With a strict chain of command, each employee has a direct supervisor with an
exception for the chief executive officer. In a more flexible chain of command, the owner may be
the highest point of contact, then a manager or two in the middle with the rest of the employees
ranking under the managers. In this scenario, the lowest level of employee would report to the
managers and the managers report to the business owner.
 5 Basic Characteristics of Bureaucracy.

1. Hierarchical Structure: Imagine a pyramid. At the top, there's the boss or the leader of a
bureaucratic organization, and as you move downwards, there are various levels with different
roles and responsibilities.
In bureaucracy, this well-defined hierarchy ensures that everyone knows their place and there's
a clear chain of command.
Each level controls the level below it. Also, the level above it controls it.
A formal hierarchy is the basis of central planning and centralized decision-making.

2. Rule-based Conduct: Established rules and procedures guide actions in bureaucratic systems,
ensuring consistency and fairness.

3. Division of Labor: Consider when you and your friends tackled a big project together. Each of
you took on a specific task matching your skills, right?
In the same way, bureaucratic organizations divide tasks among their members based on
expertise. This makes sure things are done efficiently. People with technical skills will be in a
different department than someone with human resource management skills.

4. Impersonal Relationships: Personal feelings or relationships shouldn't interfere with work.

5. Formal Selection: Ever been to a job interview? That's a formal selection process in action.
Positions in bureaucratic organizations are filled based on technical qualifications and
performance. They shouldn't be based on favoritism or personal relationships. These formal
rules and regulations guide both selection and promotion.

1. Structure:

 Hierarchy: Defines the levels of authority and the reporting relationships within the
organization.

 Roles and Responsibilities: Clearly defined tasks and duties for each position or department.

 Departments/Divisions: Groupings based on functions, products, or geographic locations.

2. People:

 Employees: Individuals who carry out the organization's work.

 Leadership: Includes executives and managers who guide and make strategic decisions.

 Teams: Groups formed to work on specific projects or tasks.

3. Processes:
 Operations: Day-to-day activities that produce goods or services.

 Procedures: Standardized methods for carrying out tasks and achieving consistency.

 Decision-Making: Processes for making choices and setting priorities.

4. Culture:

 Values: Core beliefs and principles that guide behavior and decision-making.

 Norms: Unwritten rules and expectations about how members should act.

 Climate: The overall atmosphere or environment within the organization.

5. Resources:

 Financial: Budget, funding, and financial management.

 Physical: Facilities, equipment, and technology.

 Human: Skills, knowledge, and expertise of employees.

6. Goals and Objectives:

 Mission Statement: The organization's purpose and primary objectives.

 Vision Statement: The long-term aspirations and future direction.

 Strategic Goals: Specific, measurable targets to achieve the mission and vision.

7. Communication:

 Channels: Methods for sharing information (e.g., meetings, emails, reports).

 Feedback Mechanisms: Systems for receiving and addressing input from members.

 Information Flow: How information moves through the organization.

8. Control Systems:

 Performance Metrics: Measures to evaluate efficiency and effectiveness.

 Policies and Procedures: Guidelines for ensuring consistent and compliant behavior.

 Monitoring: Systems for tracking progress and identifying issues.