Introduction The search for competitive advantage, write management consultants and educators David Nadler and Michael Tushman, is “the defining goal of modern-day business. ” Competing by Design: The Power of Organizational Architecture, is their guide to reaching that goal through total integration of corporate structure, workplace culture, and employee motivation. Bringing all such processes together into one unified organization, they contend, is as important to a company’s future as the architectural unity of the building that houses it.
Organizational Design is gaining more importance in human resource management as organizations are rethinking their role in the marketplace, their position vis a vis competitors, and their long term strategy. A key strategy in aligning the workforce with business goals, Organizational Design seeks to maximize workforce effectiveness while minimizing or maintaining costs. Five basic organizational structures are used in Organizational Design and adapted to an organization’s needs Basic Organizational Designs Have Six Structure Elements. . Specialization-a process in which different individuals and units perform different task. 2. Chain Of Command-is the unbroken line of authority that extend from the top of the organizations to the lowest echelon and clarifies who reports whom.