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14 Chapter 14 – Organizational Design

Organizational Design

We will start with one of the more obvious structures—organizational design. Whether an organization operates with a hierarchical, flat, or matrix structure for example, each design has implications for how decisions are made, how responsibilities are assigned, and how work is coordinated. Beyond decisions about hierarchy,             policies provide the rules and guidelines that govern daily operations. These elements are meant to ensure consistency and align activities with objectives. Operational policies streamline workflows, while human resource policies manage human aspects like recruitment and performance evaluation. Governance policies ensure that the organization adheres to ethical standards and regulatory requirements. Communication systems are another element of organizational design. They facilitate the flow of information, enabling or blocking coordination and collaboration. The physical and technological infrastructure of an organization supports its operational needs but also influences how employees interact. These rules and resources were initially created, and constantly evolve, to shape how people ‘organize’ within organizations. They exist as boundaries and frameworks to help people interact in a coordinated fashion around goals, but at the same time, it is not hard to imagine that how each person interprets, responds to, and applies them can change their meaning and purpose. This is where agency comes in.

A framework to help think about it

Let’s break out some different elements of organizational design so you can think about them in your workplace.

Organizational Structure: This includes the formal arrangement of roles, responsibilities, and reporting relationships. The structure defines how tasks are divided, coordinated, and supervised. Here are three common ones:

  • Hierarchical Structure: In a hierarchical organization, the structure is layered with multiple levels of management. This chain of command establishes authority, accountability, and a defined path for communication. It is meant to ensure that decisions are made at appropriate levels and helps manage complexity by delineating responsibilities.
  • Flat Structure: A flat organization has fewer hierarchical levels, promoting a more collaborative environment. This structure facilitates faster decision-making and fosters open communication, allowing for a more agile response to changes and potential innovations. Individuals have more decision-making authority and are expected to manage themselves to a greater degree.
  • Matrix Structure: The matrix structure combines functional and project-based approaches, enabling employees to work across different projects while still being part of their functional teams. This structure enhances flexibility and resource sharing but can create complexity in reporting relationships.

Policies: These are formal guidelines that direct behavior and operations within the organization. You can find different types of policies in an organization. The volume and type of policy tells you something about organizational culture as well.

  • Operational Policies: These govern day-to-day activities and processes, such as workflow, quality control, and customer service.
  • Human Resource Policies: These cover aspects like recruitment, training, performance evaluation, and employee conduct.
  • Governance Policies: Governance policies include ethical standards, compliance regulations, and risk management practices. They ensure that the organization operates within legal and ethical boundaries.

Internal Communication Systems: Communication systems facilitate the flow of information, coordinate activities, and influence collaboration among employees.

  • Formal Communication Channels: These include official reports, meetings, emails, and internal newsletters. Formal channels are intended to ensure that important information is disseminated consistently and that employees are informed.
  • Informal Communication: Informal communication, such as social interactions and unofficial channels, also plays a role in organizational interactions.

Physical and Technological Infrastructure: The physical and technological infrastructure supports the organization’s operations and shapes how people communicate. They also say something about culture. Here are two common ones:

  • Office Layout: The physical layout of workspaces influences productivity and communication. Open-plan offices, private workstations, and collaborative spaces all impact how employees interact and work together.
  • Technology Systems: Technology systems, including software, hardware, and communication tools, impact relationships, processes, and provide data for decision-making.

These are just some of the more common organizing systems, rules and resources that influence communication in the workplace. Can you see others in your organization?

Opportunity for action and change

When you join a new workplace, you’re not just stepping into a predefined set of rules and procedures; you’re entering a dynamic environment where every element—from the organizational hierarchy to the physical layout—continuously shapes communication. This realization helps you navigate the complexities of your role and the organization itself. For example, a hierarchical structure provides clear pathways for communication and decision-making, while a flat structure is meant to ensure agility and open communication. An organization with many governance policies wants clear accountability and comprehensive HR policies might signal a commitment to employee development and wellbeing.

Thinking about these frameworks can help you better understand the history of the organization, what is valued, how decisions are made, and how—and about what—you are intended to communicate. In other words, understanding organizational design can help you align yourself with an organization and manage your communication and participation within it.

Awareness of these elements helps you align with an organization’s goals and culture. It allows you to see where you can fit in, and where you might have the most significant impact. On the flip side, if you notice gaps or inefficiencies, you can propose new ideas or improvements, actively participating in the evolution of the organization’s structures. Through seemingly small actions, your awareness and proactive engagement can shape both your work and the organization’s future. This dual influence demonstrates the power of communication in creating and evolving the structures that govern organizational life.