organizational design

organizational design
The way in which managers structure their organization in order to achieve the organization's goals. The formal design of an organization is laid out in an organization chart, which indicates the duties, tasks, and responsibilities of both individuals and departments. Reporting relationships and the number of levels in the organization's hierarchy are other elements in the design. Organizational design has two basic functions:
• to ensure that information reaches the appropriate person to enable effective decisions to be made;
• to assist in the coordination of the interdependent parts of the organization.

Big dictionary of business and management. 2014.

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