Organizational design is the process of forming an organization and its workers into a myriad of structures. It is ordinary for start-up companies to have small or no organizational structures. However, as the business expands, business’s management has to start structuring a variety of departments. Organizational structures are significant as it ensures efficiency and accountability of the institution. Furthermore, through the division of an organization into units, enhanced communication is possible. Additionally, there is a proper utilization of company resources. There are different types of organizational designs. They include flat, multi-layered, rigid hierarchy, team-based and matrix organizational designs (Daft, 2001) and (Barnes, 2013).
The institution chosen is the Army for the given paper. It deals with the maintenance of law and protection of the state. It is a large foundation, thus its running is only possible through the implementation of organizational design in it. The type of organizational design practiced in this institute is rigid hierarchy one, which means that the power is divided from above to the bottom. In this type of organizational design, all decisions are arrived at by the top level of authority. Rigid hierarchy suits this institution since unyielding one ensures that the whole employee group and the company as a whole comply with the rules and regulations set. This type of organizational design is the most efficient as activities are contolled from the above link (Daft, 2001).
Decision-making in an organization could either be centralized or could have room for decentralized decision-making process. The first type means that all decisions are made by the top-most level of control. Thus, any action taken is dependent on the decision arrived at by highest link. In the given institution, decision making is not entirely centralized. Taking into consideration such fact that the foundation practices geographical departmentalization, one can assume that it could be somewhat hard for branches to depend on the central control organ in arriving at a decision for them. The activity that is to be undertaken could be extremely urgent. Hence, there has to be room for decentralized decision-making (Daft, 2001).
Departmentalization is the process of dividing an institution into a series of units with each performing its specialized tasks. The type of departmentalization being presented in this organization is the geographical type of departmentalization, where departments are organized along geographical lines. In this type, every department situated in a given region is responsible for the handling of all the institution’s activities in that particular area (Daft, 2001).
The span of power illustrates the number of subsidiaries that a manager is in direct control over. The factors that determine it include rank, employee and governing abbilities, as well as the required supervision. There are the following two major types of control spans: the narrow and broad ones. The first type is where a manager is in control of a small number of workforces. The second one, means that the manager oversees a large number of employees. The type of control applied to the Army institution is a narrow span. That is because there are few managers at the top with the extensive span of control (Barnes, 2013) and (Williams, 2013).
Departmentalization involves the grouping of employees into different departments depending on their specialization. As a consequence, taking into account the fact that there is a practice of geographical departmentalization, the employees must be having an extended range of tasks and duties. This requires from them being skilled in many spheres. (Barnes, 2013).
Thus, implementation of organizational design in an institution facilitates the productivity of the firms. Various organizational designs are tailored to fit different companies depending on their specialty. Therefore, it is paramount that a company chooses the best one that suits its philosophy. Additionally, departmentalization improves communication and eases the supervisory work of managers. Organizations that are departmentalized reap a lot of benefits. That is because work is lightened as the control over all employees becomes manageable.