Organizational Design Defined

Few things endure long term without being changed. Even well‐known brand names, familiar slogans, and classic songs face updates in today's changing culture. Organizations are no different, and must respond to changes in their environments as well. Whether it's technology upgrades to meet customer demands or policy updates to accommodate employee growth, managers must be both willing and able to deal with the challenges of change.

An organization's structure is defined by its configuration and interrelationships of positions and departments. Organizational design is the creation or change of an organization's structure. The organizational design of a company reflects its efforts to respond to changes, integrate new elements, ensure collaboration, and allow flexibility.

Organizing a business is difficult. Once an organization has a plan, the next step is to make it happen. The major characteristics of organizational structure is, in many ways, like the important parts of a jigsaw puzzle—you pick them out, one by one. In particular, the two basic forms of organizational structure are mechanistic and organic.