organizational design

  

Definition

The manner in which a management achieves the right combination of differentiation and integration of the organization's operations, in response to the level of uncertainty in its external environment.

Differentiation refers to the subdivision of functional or departmental units, each concentrating on a particular aspect of the organization's operations. Integration refers to the linking of differentiated units to achieve unity of effort in working toward organization's goals. In times of high uncertainty, greater organizational effectiveness is achieved through high differentiation coupled with high integration. In times of low uncertainty, low differentiation and low integration are more effective. See also organizational structure.


Use this term in a sentence

  • If our new interim CEO does not agree with the organizational design of the company, he will likely make some internal changes, and perhaps rearrange the entire heirarchy altogether.

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  • The organizational design impressed me greatly and it helped in making me choose them as the company I would work for.

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  • If our new interim CEO does not agree with the organizational design of the company, he will likely make some internal changes, and perhaps rearrange the entire heirarchy altogether.

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