The following outline summarizes the essential steps in designing a sound organisation structure:-
|Step 1.||Clarify, in writing, the over-all objectives desired for the organisation as a whole asking yourself - Why was the organisation established and what is it now trying to accomplish ?|
|Step 2.||Determine what major activities are necessary in order to achieve desired objectives and results ?|
|Step 3.||Group these activities into closely related major functions (design, distribution, finance).
This grouping must be simple, tailor-made for each organisation. |
Accepted by those who will be affected.
|Step 4.||Systematically unite the major functions into a sound, simple framework which constitutes the skeleton
of the organisation structure.|
The organisation structure as a whole and each part there of should
be designed so as to facilitate the accomplishment of definitely established
objectives and also encourage:
(a) Direct, clear-cut lines of authority, accountability and responsibility.
(b) Optimum performance by each of the functional groups, with clean cut-off lines of accountability.
Avoid overlaps and gaps of responsibility.
(c) Ease of co-ordination and communications - up, down and across all levels of the organisation.
(d) The completion of periodic performance appraisals of the work of each functional group.
(e) High morale and job satisfaction on the part of every person in the organisation.
|Step 5.||Complete the basic organisation structure and get the necessary approvals, in principle,|
before attempting to complete any detail breakdowns by departments, sections and units.
|Step 6.||Observe the following techniques before attempting to put any organisation|
structure into effect:-
(a) Develop an "ideal structure" that is the best structure that can be designed for this organisation.
(b) Identify the difference between the "ideal structure" and the "current structure"
Ask yourself how will the ideal structure facilitate improved performance ?
(c) Review the potential utilization of the present staff in the proposed structure.
In priority of importance, what steps would need to be taken in order to fit the
present staff into the proposed "ideal structure" ?
(d) Ascertain what personnel problems are involved with respect to viewpoints
vested interests and objections to the changes that may be required by the
proposed structure and what are the solutions to these problems ?
(e) Develop a revised chart which can be recommended for approval and a tentative
schedule of changes that are required in order to bring about needed
improvements. What is the best sequence of changes to be made ?
When should these changes be made and who should do what ?
(f) Move the revised organisation plan, as approved, forward as rapidly as
changes can be made, with the least possible disturbance of morale and
productivity and the best interests of the over-all organisation.
Determine who should be accountable for following through all phases of
the plan as approved.