What is Organizational Theory and Design?
Expert Answer
The study of organisational designs, their structures and organisations’s relationship with external environment is organisational theory.It suggests how an organisation can cope with rapid changes.
The process of configuring roles, structures, processes and systems, to create an effective organization capable of achieving the business strategy is called organisational design.
It involves:
Assigning tasks and responsibilities to individual Jobs.
Grouping jobs based on function,units and divisions.
Relationship establishment between individuals and groups
Allocate and deploy resources available with organisation.
Defining effective control,coordination and communication mechanism.
Dimensions of organisational designs are:
1) Formalisation
2) Centralisation
3) Specialisation
4) Hierarchy of authority
5) Professionalism
6) Personnel Ratios