What Are the Different Organizational Design Models?

Traditional organizational design is a functional organizational structure design, a typical functional organizational structure based on manufacturing enterprises. ^[1]

Traditional organizational design is a

• Traditional organizational design principles are typical functional structures, derived from a single

  (1) With the evolution and differentiation of the industry, the proportion of non-manufacturing companies is increasing, including

  In traditional theory of organizational management, organizational design needs to go through four stages, namely analysis, construction, integration, and realization.

  Traditional organization design (1) analysis

  The analysis phase is the beginning and the basis of the design work. The main task at this stage is to plan the content of the organizational design, and determine the principles, objectives and time schedule of the organizational design. ^[2]

  According to the specific content of organization design, based on the research results of organization design in traditional organization management theory, it can be divided into five modules, namely design, process design, authority design, performance design, and incentive design. After clarifying the content of the design, an important work to be done in the analysis phase is to determine the principles of the design. The design principle is the principle that the entire design work should follow, and it is the direction of organizational design. In determining, the internal and external environment of the organization must be fully considered. ^[2]

  Traditional Organization Design (2) Construction

  The construction phase is a phase of constructing specific modules for the organization according to the design content and principles determined in the analysis phase, that is, the phase of constructing the five modules of organizational structure, organizational process, organizational authority, organizational performance, and organizational incentive. ^[2]

  Organizational structure is one of the most important modules in organizational design, and it determines the overall shape of an enterprise organization. The organizational structure is designed to accomplish organizational goals. It refers to the constituent elements within the organization and their interrelationships. It is a measure of the degree of complexity, formalization, and centralization of the organization. It involves organizational levels. Confirmation, organization setting, division of functions, identification of responsibilities and authorities, and the relationship between members of the organization, etc. It can be said that the essence of the organizational structure is to clarify the internal division of labor and cooperation, and its content is to construct duties, responsibilities, and rights. Structural system (Zhao Huiying, Lin Zeyan, 2003). ^[2]

  Organizational processes are the second major module of organizational design. Organizational process is the actual process of a series of activities to meet the needs of customers and achieve organizational goals, under the guidance of the organization's logical thinking mode and existing resources, to achieve a product or service. It is to complete a certain goal (or task). An ordered collection of logically related activities (Rui Mingjie, Qian Pingfan, 1997). The organization process starts with customer needs and resource input, meets customer needs, and creates valuable products or services for the enterprise as the end point, and determines the efficiency and effectiveness of enterprise resources. In other words, the organizational process is a collection of activities that starts with the input of various raw materials and customer needs and ends with the creation of products or services that are valuable to customers. ^[2]

  Authoritative design is the third major module of organizational design. The main purpose of this module is to realize the rational distribution and control of organizational authority in the organization. When building a module, it is necessary to design a power distribution method and method suitable for the characteristics of the organization. On the other hand, there must be control over the distribution of powers, otherwise the powers will cause chaos in the organization if it loses control. Only through the cooperation of allocation and control, it is possible to complete the construction of the authority module. ^[2]

  Performance design is another important module in organizational design. The goal of performance design is to develop a detailed performance management plan for each component of the organization. In the construction of the performance module, four major contents need to be designed: how to evaluate the overall performance of the organization; how to evaluate the performance of each component; how to evaluate the performance of the process; ^[2]

  The last part of the module building is the motivational design. The purpose of incentive design is to develop various types of incentive systems for the organization. Organizational incentives should not just be a temporary reward, but should be fixed as a system. When designing the organization, it is necessary to design the organization's incentive method, adopt different combinations of incentive methods according to the actual situation of the organization, and make it into an enterprise system.

  Dividing the work of organizational design into five modules does not mean that in the actual operation process, several modules need to be separated to build separately. On the contrary, because the modules are closely related to each other, they must cooperate with each other during construction, and the module construction needs to be considered from a global perspective. ^[2]

  Traditional organization design (three) integration

  The purpose of integration is to match the organization's construction plan with the specific factors of the organization. The degree of such matching can be checked from three aspects.

  First, check how well the organization's design fits the organization's strategy. Whether the organizational design plan matches the development strategy of the organization is the first issue to be considered in the integration process. This integration is called strategy-based organizational design integration. The organization's various systems and structures must be arranged based on strategy. Anything that is conducive to the realization of its strategy is reasonable, otherwise it should be changed. ^[2]

  Second, check how well the organization's design plan matches the business ecosystem in which the organization is located. The external environment in which an organization lives is ever-changing. Organizations living in different environments also have different characteristics. This integration process of checking the matching between organizational characteristics and environmental characteristics is called ecological-based organizational design integration. It is called ecology-based to highlight the organization's ecological understanding of the external environment. Organizations exist in a specific environment. This environment is a special ecological environment. It is called a business ecosystem. ^[2]

  Again, check how well the organizational design matches the type of organization. Different types of enterprises require different organizations. This process of checking the degree of matching between organizational characteristics and organizational types is called type-based organizational design integration. Based on different classification criteria, organizations can be classified in many different ways. Strictly speaking, categorizing according to each different standard will have some impact on organizational design. Type-based design integration is based on recognizing the characteristics of these types of enterprises, and matching organizational design schemes with organizational type characteristics to maximize the organization's design schemes. ^[2]

  Traditional organization design (4) realization

  During the implementation phase, the issues that designers of organizational design need to focus on are the implementation process and the resistance control of implementation. The realization of design is a large project, which is different from the independent operation of analysis, construction and integration. It needs to involve all levels and components of the organization. The correct implementation steps can promote the smooth implementation of the entire design scheme, while the wrong implementation steps can lead the organization's design astray. In addition, in the implementation of organizational design schemes, it is a common phenomenon to encounter resistance within the organization, and understanding the process of organizational design and implementation of detailed implementation progress can also effectively control the resistance in the implementation process. ^[2]

  In the traditional theory of organizational management, a complete and scientific organization design activity is finally settled through "Analysis Construction Integration Realization". By summarizing and analyzing the research results of organizational design in traditional organization management theory, this part has formed a more systematic understanding of organizational design. We will use this as a basis to study the internal structure design method of modular organizations. ^[2]