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Organizational Design

Konczak (1997) defines organization design as the process of building up structures and systems to establish an organization capable of achieving the desired goals and objectives. Various strategies are created to achieve the goals predetermined by the shareholders. To achieve these goals the strategies are formulated to show a path towards their implementation. Organization design aligns organizational goals and the personal goals of the employees. The management creates the organization design as a means of motivating employees to contribute to the goals and objectives of the organization (Kates, 2007).
The organization design is used as a framework for making decisions (Williams & Rains, 2007). The management assigns various duties to the workers based on the resources available. Optimal allocation of resources is enhanced by a good organization design. The roadmap to success is created by making decisions about the best strategy to be adopted by the organization. Managers always focus on the organization design when establishing the strategies of the organization. Resource allocation strategies are established according to the needs of the organizations as well as the predetermined design (Konczak, 1997).
The increasing competition in the domestic and global markets requires the managers to focus on establishing strategies which will provide competitive advantage to the organization. Organization design is established to increase the competitiveness of an organization by creating strategies which match the resources available to the market demand. The spirit of globalization has increased the need to access international markets as well as diversification in production. These policies can only be achieved by creating an efficient organization design which captures all aspects of the current market. Organization design requires establishing the appropriate choice in production. Managers must make the appropriate decision about the choice of products to be produced by the organization to provide maximum benefits while minimizing the costs incurred (Williams & Rains, 2007).

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