Organizational Design Critical Components

Almost no organization can exist without the internal rules for the organizational design. The creators of the organization have to design the basic principles and components of the organization.

The founders of the organization have to set the basic rules for the organization and its future organizational development. The rules are very important for the growth of the organization as the rules set the main logics behind the growth of the organization.

The rules are focused in the following main areas:

  1. The creators have to decide about the span of control in the organization. It is very connected with the responsibilities of the individual members of the organization. When the span of control is wide, the responsibilities have to be wide as well and vice versa.
  2. The authority of the individual members is the next rule to be decided just in the beginning. The creators can leave all their authority at their level and every decision about the growth and organizational development of the organization has to be made at the top level of the organization or they can delegate the authority and responsibilities to the lower levels of the organization. When the authority is not delegated, the people in the organization are just asked to make the orders, when the responsibility is fully delegated, the people can be fully responsible for the results.
  3. The accountability is one the most important components of the organization. The accountability allows to people to feel their full involvement in the life and growth of the organization. The top level of the organization is focused just on the strategic issues and strategic decisions of the organization, all the rest is in the full responsibility of the individual members using the help of the management.