Organizational design
Performance of organizational design, which consists in design and rationalization of existing organizational management structures is possible only on the purely scientific methodological basis, which is the system of principles of formation of organizational management structures.
These principles are as follows:
- The principle of one objective: it presupposes the availability of a well-defined objective of the company.
- The principle of the primary role of functions and a secondary role of the structure: the construction of organizational structure shall be based on defining the composition and substance of management functions.
- The principle of functional self-sufficiency of the management’s subdivisions: the circle of tasks for each structural subdivisions shall be well-oriented at achieving the goal of management
- Simplicity of the organizational structure: the simpler and the more exact the construction of the management structure is, the easier it is for the personnel to understand and adapt to such form of management and take an active part in realization of the company’s goal. Furthermore, certain chains and levels of management shall be minimal.
- The principle of one instruction: an employee shall receive instructions from one chief only. This is a necessary condition of conformity of actions and coordination of efforts.
- The principle of optimum norm of manageability: the number of subordinates of one employee shall be limited. The norm of manageability shall be defined by the nature of the chief executive’s work and relations of chiefs and their subordinates.
- The principle of feedback: due to this principle the possibility of exercising continuous control over the results of system’s functioning is ensured, and the conditions of its use are created.
The above listed principles of construction of organizational management structures are interconnected and interdependent. Each of them has its own meaning, but only their combined use provides for complex, scientific nature.
When performing organizational design, the important thing is not only to design the organizational structure of the company and its subdivisions, but also to develop the system of internal regulations and mechanisms which would make this structure work effectively.
