The Benefits and Value of Organisational Design
The organisational design of a company is the process for creating a structure, defining roles and departments within the business and a general chain of command. The organisational chart is a summary of the design which is commonly used during the recruitment process to show candidates where their role sits within the organisation. Organisational design can bring a lot of value to a business, and there are many advantages to this.
Clarity of Roles
A clear organisational design can ensure clarity of the roles within the business, and where each role sits. Everyone knows who they are responsible for, reporting to and where information is flowing throughout the business. This clarity can help improve the efficiency of the business.
Improve Employee Experience
A strong organisational design can also improve employee experience. It might include a structured on-boarding process, communication around company values and ensuring new starts know where they sit within the organisation, and who they liaise with. The organisations with a clearly defined design and structure will make the experience more enjoyable for new employees.
Better Decision Making
Organisational design can be used to ensure information flows efficiently throughout the different and most relevant departments and people in the organisation, which can result in better decision making. With a clearly defined organisational design, managers know where to send information to ensure business objectives are achieved. Overall, it makes the flow of information more concise.
Achieve Business Growth
If an organisation is designed well, it can grow more quickly and efficiently than other organisations. An aspect of the design, for example, may be the infrastructure, which allows new employees to be added to the network quickly. This can allow the business to grow its workforce more quickly and efficiently than one which has no clearly defined infrastructure. Organisational design can also help a business to develop strategies for handling “business of today” and “business of tomorrow”, which allows them to focus on current business, as well as business growth.
Opportunities for Growth
A clear and concise organisational design can help promote opportunities for growth for employees. It can allow for succession planning, which is beneficial for both the business and employees. Employees have a clear structure for promotion within the organisation, while the organisation can plan for future needs and fill roles internally. This can increase retention and can be more cost effective than using external options for recruitment.
Improve Communication
When the organisational design is unclear, it can result in a lot of confusion over roles and as a result, communication can be hindered. A clear organisational design shows the flow of information throughout the company, which makes it easier to share ideas. Organisations could have many talented people within their business, but they could still fail to perform well if there is no clear organisational design.
The most efficient organisations are those which have a clear design and structure. If you don’t have a structured organisational design in place, it can seem quite daunting, but you can start with one project and progress from there.
