Factors Influencing Organizational Design

In other words, any company should adopt an organizational design that would serve its strategic purpose, instead of it being the other way round. For example, if a bike-manufacturing company wants to expand its business into sports goods and apparel, then the resources that will be needed for this will definitely impact the company’s organizational design.

If the company was operating in a market-oriented organizational design structure, now it will have to adopt a product-oriented organizational design model. If it is planning to open offshore units, then it will have to adopt the geography-oriented organizational business model or else they will end up selling baseball bats in India and duke balls in the US.

To design a smoothly-functioning, efficient organizational design, the managers have to take a lot of factors in mind. Not only do they have to consider the clients and business side, but also the implementation too. The most important factor is the company vision. Depending on what the company wants to achieve, the managers will design objectives that the employees will adhere to while working.

This combination of strategy and implementation is crucial in ensuring success and business growth for companies in the long run. Organizational strategy can be defined as the “Articulation of a Vision”. During making these strategies, companies consider the competitive position they hold on the table.