Factors Influencing an Organization Design

Organization design is the creation of a certain organizational structure that helps a company run efficiently, increases productivity and achieve its goals. Some factors that influence the complex method of organizational design are size, environment and technology. Different approaches are used according to the needs of the organization.

A factor that influences organizational design is the size of the organization. Different structures need to be used according to size, which makes it easier to manage. Size has to do with the number of personnel or employees, sales and resources. It there are only a few employees, the functions of the organization can be performed by the sole proprietorship. More units with specialized work are needed for a large organization such as specialization departments and teams.

Environment is also an influencing factor in organizational design. The general environment includes education, social-cultural, legal-political, technological, economic and the natural environment. The internal organization design is influenced by the stability and uncertainty of the external setting or environment. Some approaches used include handling external changes and investing in research, holding onto the current market by increasing internal efficiency and strengthening the organization.

Organizational success depends on a combination of skills, knowledge and technology. Technology is one of the main influences of organizational design. It’s the way tasks are performed using equipment, tools or methods. Different levels of technology are needed in order for an organization or company to function. The type of technology is according to the type of products that are produced. Three general types are small batch, large batch and continuous-process.