In the context of management, organizational design involves hierarchical flow of control and command within an organization. Design establishes a formal line through which managers deliver information to subordinates, and obtains feedback from the workforce. Presence of such formal channels of communication enhances the probability of acquiring collective efforts of employees towards an organization’s objectives. Apart from relying information, designs adopted by an organization also enable efficient integration of technological tools within production lines. Integration of technology in production will ultimately lead to competency and increased yields.
Currently, managers are adopting modern ways of production that will serve the purpose of increasing competency while reducing cost of production. In this case, use of technology in service delivery and product manufacture increases efficiency, product quality and optimizes cost of production. Upon installing the various technological tools, management will have to adopt suitable design in order to facilitate integration of distinct work centers with different tools of production. According to Gareth (2012), use of technology may result in slight changes within old design structures. This is because automation of production lines lead to redundancy of certain job positions; hence resulting in lay-offs. Apart from redundancy of job posts, technology shifts management structure from organic structure to mechanistic structure. Consequently, activities like decision making processes will shift from being decentralized to being centralized.
Despite the partially negative mechanistic attributes that technology presents to organizational structure, it improves competence through product efficiency. Gareth (2012) agrees that automation of processes enhances consistency of product quality, thus responding to the customized needs of customers. Advanced production programs like Computer Aided Material Management (CAMM), allows supervisors and machine operators to conveniently control production schedules. This controlled flow of input and output materials will reduce challenges associated with managing inventory by minimizing the need for stockpiling. Therefore, integration of appropriate technology with suitable organization design translates into improved competence in production and service delivery.
Gareth, R. J. (2012). Organizational theory, design and change. (7th ed). Harrisburg: John Wiley & Sons Publishing.