“Organizational Design” contribute strategic success of an enterprise

An organizational structure is the pattern or arrangement of jobs and groups of jobs within an organization. This pattern pertains to both reporting and operational relationships, provided they have some degree of stability.

In my opinion, organizational design is critical to business success, nevertheless it is worthwhile to review these reasons. The structure of a firm either enhances or hinders efficiency and productivity. In other words, how information flows and to whom, whether and how many parts of the work process is redundant, how clear and precise is the reporting structure, if and how new ideas and products are promoted, these and many more issues are obvious consequences of structure and profoundly affect the success of the business.

Generally, organizational theorists believe that no one structure, set of systems, or method of staffing is appropriate for every organization. Organizations operate in different environments with different products, strategies, constraints, and opportunities."

But despite the wide variety of organizational structures that can be found in the business world, the successful ones tend to share certain characteristics. Indeed, business experts cite a number of characteristics that separate effective organizational structures from ineffective designs. Recognition of these factors is especially important for entrepreneurs and established small business owners, since these individuals play such a pivotal role in determining the final organizational structure of their enterprises.

As small business owners weigh their various options in this realm, they should make sure that the following factors are taken into consideration:

• Relative strengths and weaknesses of various organizational forms.
• Legal advantages and disadvantages of organizational structure options.
• Advantages and drawbacks of departmentalization options.
• Likely growth patterns of the company.
• Reporting relationships that are currently in place.
• Reporting and authority relationships that you hope will be implemented in the future.
• Optimum ratios of supervisors or managers to subordinates.
• Suitable level of empowerment to be granted to employees at various levels of the organization.
• Structures that will produce greatest worker satisfaction.
• Structures that will produce optimum operational efficiency.

Once all these factors have been objectively examined and blended into an effective organizational structure, the small business owner will then be in a position to pursue his or her business goals with a far greater likelihood of success.

source from: liebowitz & assoc and other article in google ^_^