Why organization design matters?
The organization design is important for the successful competitive organization. Just the company that understands to its underlying principles can run successfull change management projects, drive the efficiency, clearly split roles and responsibilities and manage the satisfaction of employees.
The entire success of the business starts with clear roles and responsibilities. Most companies do not split responsibilities clearly, and they accept some level of chaos in the organization. However, the organization should always clearly define responsibilities for the mission critical processes. If the process is important for the external client, it has to be defined and all accountable job roles should be included on the list.
The organization design allows to allocate costs correctly and utilize all resources available fairly. Managers cannot hide unutilized employees because the organization design principles will uncover such spots in the company. It allows to focus most resources on the delivery of the value added to clients and customers of the business.
There is a strong correlation between the organization design and the satisfaction of employees. The organization, that builds the structure using simple and understandable rules, makes work life easier to employees. They understand to key processes, and they understand their roles in the company. They can add value.
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