EXCPR™: Organization Design

Thursday, July 25, 2019

Organization Design

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.