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BASIC MODELS FOR

ORGANISATION DESIGN

There are several organizational design models, all of


which are intended to take a systematic or holistic
approach to building or reviewing an organization

Similar basic elements

STRATEGY
STRUCTURE
Shared Values
Systems

Benefits of one model over another will be determined:


on the goals of the organizational design activities
the culture of the organization

Star Model

Strategy
Structure
Systems Processes
People
Shared
Values

Strategy
Strategy determines direction. It includes:
Organizations goals
Objectives,
Vision and mission

Structure

This is the location of decision making power within the


organization and includes:
Specialization type and number of job specialties
used in performing key functions.
Shape span of control or FTE at each level in the
structure.
Distribution of power centralization/decentralization
and movement of power to
the department dealing directly with the issues most
critical to the mission.
Departmentalization by function, workflow process, or
geography

Processes

Processes have to do with the flow of information.


They are the means of responding to
information technologies and include
Budgeting and planning,
Departmental policy and procedures, and
Work flow

Systems
Systems are the tools and technologies that support
the people working in core processes.
Examples include
Compensation,
Performance management,
Recognition,
IT platforms and systems,
Work spaces and equipment

People

This category in the Star model encompasses the Skills and Staff
categories .
It includes programs and policies that generate the knowledge, skills,
abilities and talents
needed by employees to be successful in their roles. Examples
include:
Recruitment and selection,
Training & development,
Competencies and performance measures,
Succession management.
These programs, appropriately combined, produce the talent that is
required by the strategy
and structure of the organization to achieve its goals.

Shared

Values

What the organization stands for and what it


believes in.

The Seven S Model (from McKinsey)

Strategy
Structure
Systems
Skill
Style
Staff
Shared Values

SKILL

Skill Distinctive capabilities and core competencies of staff or the


organization as a whole to enable
excellence in goal achievement and competitive advantage in the
industry.
Things to consider include
Competency models that reflect current and evolving skills need for
success,
Employees current knowledge, skills and abilities,
Approaches to monitoring and assessing knowledge, skills and
ability,
Performance management
Training and development approaches to close the gap between
current and desired .

Staff

Numbers and types of people in the organization.


Includes
Numbers of people,
Core specializations corresponding to
organizational goals,
Roles and responsibilities per job categories,
Methods for acquiring, developing and retaining
the right talent and diversity, and
Succession planning

Style

This category is not included in the Star model but


could arguably be part of the Shared Values category.
In the 7-S model, Culture or Style mostly is about
behaviors of leaders and employees, how they
work together and with customers and partners. It is
about how the organization achieves its
goals.
Style includes
The directive or participative practices of leaders,
Decision-making and priority setting.

Thank you