Question

Describe two major issues that are important in organizational design?

for business

Answer

Organizational strategy. The design must align with the strategy so the organization is able to more effectively execute the strategy. For example, in mergers, companies often see a redundancy of roles and responsibilities - determining the best structure also means determining who stays and is responsible for what.

What the organization does (e.g. manufacturing, marketing, sales, etc). If the organization is focused on manufacturing, then a traditional structure may make the most sense. If it is a research organization that relies on cross-communication betwee teams, then a matrix may be the best.

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