Question

How does organizational design terms (Organizational design, Organizational structure and Contextual variables) affect for organization?

Answer 1

There are many direct and indirect ways in which concepts like the design of the organisation and the corresponding structure, contextual variables etc. affect the organisation.

• Organizational design helps the higher management to move the system and nodes in the process basis the needs of the business i.e. how flexible the system is and to what extent it can be modified. Both short term and long term goals can be accessed and studied and basis the design of the organisation resources can be aligned and hence it greatly affects the organisation.
• Organizational structure also plays a very important role as it gives a clear picture of what are the levels of hierarchy and what could be the possible escalation matrix, it also gives an idea of how easy or tough implementing a change in the organization is. The pace of growth for employees is also depicted by the structure of the organization.
• Contextual variables also affect the organization in many ways as it gives an idea of the setting in the organization in which the interaction is occurring. A lot of importance is given to this as various business decisions are taken basis this.