ORGANIZATION DESIGN
One of the most
important themes of building proper institutional work is to strike a relative
balance between the ability to make management decisions at the right times,
the availability of information and data, the motivation of team performance,
and building of a sound organizational structure. The results of Deloitte research
indicate that the organizational structure design is one of the most important
human resource- HR - hubs on which
international companies are absolutely dependent, and advanced on other
important elements such as leadership and business practices. A sound
organizational structure is based on a deep understanding of the way the
organization works, in order to support and achieve its existing strategic
objectives. This concern has been given to the importance of the organizational
structure towards both pace of work and the speed of achievement. The concern
for action is to balance the decision-making process as required, as opposed to
achieving the creativity necessary for business development. Companies seeking
rapid growth are building a robust structure that maintains their cohesion
during rapid growth processes and counters competitiveness in different
markets. Therefore, the company may have a talented team capable for achieving
the highest levels of productivity, but without adjusting and recycling the
necessary tasks and responsibilities, the progress desired by the company's
owners will not be achieved.
The follower of the
foundations of proper institutional work is aware of the extent of the
developments that the business has intensified over recent years, after the
institutions were based on individuals in person towards profitability, at one
time seeking to inflate those profits according to the work of permanent
institutional work that achieves sustainability and continuous expansion. As we
are now in a period of modern technology and openness to global markets, we are
witnessing other requirements that achieve a solid stability balance in
production processes with agility activity and mutual speed, which requires the
development of the organization design structure permanently.
As for the additions
achieved by a good corporate organizational structure, they can be reduced to
the following key elements:
·
Achieving flexibility in institutional
work and speedy decision-making.
·
The distribution of roles and work
responsibilities.
·
Reduce and manage the company's operating
expenses.
·
Achieving long-term business
sustainability.
·
The ability to transform strategies into
effective operational steps.
·
Achieving an increase in the size of net
realized profits by up to 5% per annum, and an increase in market share.
The redesign and
rehabilitation of the corporate organizational structure is an ongoing process
towards the proper implementation of the institutional process. Once the
corporate mission and overall vision of the company's owners are determined, we
need to rely on corporate strategy and governance-compliant business frameworks
to move forward to the stage of building the proper organizational structure.
The good organizational structure includes each of the following stages:
Dynamic
It is a stage of
measuring the effectiveness of institutional performance and providing the
necessary correctional procedures to raise the level of effectiveness of the
maximum possible situation.
Stability
In the horizontal
axis, the relative level of stability experienced by the company's work is
measured, and the level is raised to higher levels.
Agility
As a result of the two
previous hubs - dynamic and stability - the company responsible for designing
the organizational structure provides the highest level of activity desired for
the corporate work in the company.
Finally, the
importance of rehabilitating and redesigning the corporate organizational
structure has become a fundamental need for business and market survival, with
results indicating that 29% of the world's leading companies have already
redesigned their organizational structure over the past two years. In addition,
the results shows that almost 54% of the traditional companies are become out
of the market and competition, because of not developing their organization
structure.
EXCPR™
for Consultancy & Business Management
P.O.
BOX 21407 – Safat 13075 Kuwait
Tel:
+965 600-39277
Fax:
+965 224-78734
Email:
info@excpr.com
Website:
www.excpr.com
Key
words:
Hierarchy,
organization design, governance, corporate governance, corporate strategy,
reduce cost, human resources.
EXCPR Public
Relation
Copyright ©
EXCPR Company
Organization
design
July 2019
