What Caused Organization Design To Happen?

Organization design concerns the generation of positions, procedures, and formalised reporting relationships in a company or an institution. One can differentiate between two stages in an organisation design procedure – strategic grouping and operational design.

Strategic grouping sets up the holistic formation of the company, whereas operational design is concerned with describing the functions and duties in detail.

Organisation design is basically an evolution of the structure of any professional organisation. Plato and Aristotle both addressed this concept in their teachings. Machiavelli laid the base for what we call as organizational influence and politics. Adam Smith, the father of economics, supported a novel method of organisation structure founded on the segregation of labour. Sociologist Max Weber mentioned national organizations and started the debate over influential leadership.

Organizational design is thought to have started as an academic subject with the arrival of scientific management in the 90s.

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