Effective Organizational Architecture

The organizational design or the organizational architecture has to be efficient as it is simple to bring the organizational architecture, which is brilliant, but it does not work and it affects hardly the competitiveness of the organization on the market.

The successful systems have their characteristics in several areas, mainly in the following ones:

  • Simplicity – the simpler the system is, the easier the members of the organization can use it and the chance of using it grows. The simplicity is about keeping the connections simple and limited in number allowing a quick reaction of all involved parties
  • Flexibility – the organizational architecture has to be flexible as it can be adjusted as the external or internal conditions changes; when the organizational architecture is not flexible, it has to be changed, which is cost inefficient; on the other hand, the organizational architecture has to provide the stability and the final flexibility is always a compromise
  • Reliability – the reliability is about the robustness of the organizational architecture and the robustness of the processes based on the assessment of the critical points in the organizational architecture; it is always a compromise as there is no possibility to have a back up for everything and the organizational architecture has to detect the point, where the back up has the highest impact on the outcomes
  • Economy – it is a compromise as usually, the economical organizational architecture does not keep the redundant points in the process, but it keeps the possibility for finding a quick back up
  • Acceptability – the worst condition for the effective organizational architecture as it has to be fully accepted by the managers and employees living and operating in such architecture.

The HR Business Partner has to ask the critical questions during the organizational design phase as answering these questions after the organizational architecture gets implemented is too late.