MS 10 IGNOU MBA Solved Assignment - Briefly describe the factors which affect organisational design and explain the four approaches in assessing organisational effectiveness.

Briefly describe the factors which affect organisational design and explain the four approaches in assessing organisational effectiveness.
Ans :The organizational structure of your business provides a foundation for lines of communication, responsibility and tasks. As the framework for your business, the organizational structure you select dictates the number of management layers, how your business is functionally divided and the overall reporting structure. Multiple organizational designs can be used to enhance your business’s strategy including simple, functional, matrix, hybrid or a self-designed structure.GeographyCompanies that manufacture products, maintain multiple business offices or sell products in different geographic locations may need a different business structure than companies with centrally located business activities. An organizational structure that places some management decision making and control at the local level may be required to obtain talented employees and to enhance customer service. For example, a geographic functional structure provides local control for all activities, employees and reporting to ensure consistency, reliability and a locally focused support and sales staff. Companies with one primarily location can streamline their activities by using a simple structure that minimizes layers of management.SizeLarger business size often equates to a more elaborate or complex organizational structure. As your business expands, additional layers of management, business units and a formal chain of command are generally needed. While a small business may function on an informal structure with limited management oversight, a large business generally needs managerial control to help assign tasks, ensure quality and maintain a focus on business goals.EnvironmentThe competitive environment of your business can dictate the type of organizational structure you need. For established businesses with a basic business product and moderate competition, the need for innovation may not be as pressing as the need for consistency and customer support. Companies that routinely offer new products or are in highly competitive markets need to be nimble and responsive to changes in product demand. A more formal business structure that clearly dictates areas of responsibility may be suited to a more established business, while a functional structure that divides responsibility by product line may offer you increased flexibility.Business StrategyAligning your strategy and business focus with your organizational structure can tie decision making and control to the needs of your business. Companies with multiple sales channels, product lines or methods of customer interaction may find a product-focused business structure can decrease response times and increase accountability. Fewer managers and employees specializing in one product may prove more effective than a group of employees that focus on multiple products at the same time. Businesses that focus on project-based activities may benefit from a matrix organizational design that provides a functional business manager and a project manager for each employee.Attributes of an effective organization Change is an ongoing organizational process Structural designs are temporary Learning is built into the organization Lateral relationships become increasingly more important Linkages and close relationships are developed with elements in the external environment Decision making depends on lateral relationships and mutually satisfactory arrangements Management's role changes from control to leadership People-management practices are involvement oriented rather than control oriented