Factors That Affect Organizational Design
                     Factors That Affect 
Organizational Design
Factors That Affect Organizational Design
God organizational design and structure is very important for the 
success of any business. It helps in improving communication, 
increasing productivity and inspiring innovation. It will help provide a 
business environment where employees can work more effectively. 
In both small and large businesses, most productivity and 
performance issues are normally attributed to poor 
organizational design. Not only does poor organizational design result 
into confusion within roles, but it also results into a lack of 
coordination among functions as well as failure to share ideas. You 
may have talented people, a clear mission and great leaders, but your 
company may still not be able to perform well due to poor 
organizational design. 
Factors That Affect Organizational Design
To be effective, you must make sure that your org design is aligned 
with your business strategy as well as the market environment in 
which the business operates. The org design must also have the right 
controls, the right incentives, the right flexibility, the right resources 
and the right people.
There are various factors that affect organizational design. One of 
them is strategy. Regardless of the strategy that you pursue in your 
organization, the org design and structure must support it to be 
successful. If it cannot do that, it would be good idea to change it.
Factors That Affect Organizational Design
Another factor that affects organizational design is size. A good 
design is the one that takes into account the size of your company. 
The larger your company grows, the more need there is for formal 
structure, clear lines of authority as well as defined work 
assignments. The organizational life cycle will also affect org design. It 
includes four stages, including birth, youth, mid-life and maturity. 
Each stage connotes the different structural needs. You also need to 
consider environment, controls and incentives when thinking about 
the appropriate structure of your organization. 
For more information on the factors that affect organizational design, 
visit our website at Nakisa
Factors That Affect 
Organizational Design