Organizations as Systems
Organizational design is about the technical approach to the organizations. The organization has always its purpose for their existence in the world. When some organization reaches its goals, meets the vision, the organization declines and it is replaced by other organizations with a better vision and mission, which attracts new members.
The organization has always the goal and it organizes itself as the system to reach the goal. The existence of the organization is always determined by the goal and the goal defines the basic organizational design of the organization.
Generally, the bank has the goal of providing the loans and collecting the payments and it is organized to fulfill the goals efficiently. That is why; the banks around the world are organized very similarly.
The organization divides the vision, mission and goals into smaller pieces as the organization can accomplish its goals. The organization leaders know, the roles within the organization have to be divided and the organization leaders also know, the organization needs leadership and management, as the people are not usually able to organize themselves on their own.
When the top management decides about the design of the organization, the vision, mission and goals of the organization play the main role. The top management decides about the main units of the organization to reach the goals and their capacity.
The top management creates the layer of the operational management, which has to define the individual roles in the organization for the smooth processing of the requests and tasks to fulfill the goals.
The organizational design is pretty easy, when the technical approach is introduced. The organization has to decide about its goals and it has to plan the capacities.
The organizational design ensures the organization can meet its targets and that it can survive the competition on the market. The organizational design can be the competitive advantage as it makes sure the organization is efficient and reacting quickly to the changed conditions on the market.