What Is the Connection between Organizational Design and Development?

Osmand Vitez
Osmand Vitez
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Businessman giving a thumbs-up

Organizational design and development are two elements of an organization’s process of growth. The first activity — organizational design — is often the plans a company has for creating a structure for its operations. Organizational development, on the other hand, is the method or process a company goes through to reach its intended goal for creating structure. The connection between organizational design and development is quite clear; without a plan, the company cannot achieve an organizational development. Owners and executives are usually most responsible for this process, though an external consultant may be necessary.

Many different types of organizational designs are available. Companies may be tall or short in nature, with the former including many layers of management and the latter with fewer. The other parts of the organization can be technical, social, administrative, or strategic depending on the needs of the company. External factors rarely affect the organizational design of a company. Therefore, the connection between organizational design and development starts with internal processes first.

A company goes through organizational development after it creates its design. Companies often work their normal operations during the same time they create their organizational development activities. A few steps an organization goes through include realigning goals, moving employees to different areas, and restarting departments with new personnel and goals in mind. All systems may undergo developmental changes based on the design plans created earlier. Organizational design and development may have specific timelines for completion.

External consultants are often critical parts of the organizational design and development process. Owners and executives may find it difficult to be objective when creating a new design for the company’s internal operations. Other times, these individuals may simply lack the requisite knowledge or skills to complete this task. The organizational consultant can bring specific ideas to the company and the knowledge of organizational design and development from other businesses. This allows the company to implement successful industry practices into its own business operations.

Economic growth and change are often driving forces for a company to alter its organizational design and development. Companies must change in order to stay relevant with competitors and consumer demand. A sluggish internal organization can undo the success a business experienced in its earlier years. Many different options are often available for a company to change and alter its operations in order to remain effective and improve production output.

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