Explain main considerations while designing the organisation structure.
While designing the organisation structure, there are two major considerations:
- Differentiation and
- Integration
Differentiation refers to differences in cognitive and emotional orientation between managers in various departments and the differences in the formal structure of such departments.
Integration means the quality of the state of collaboration that is needed to achieve unity of effort. Different departments are integral part of the entire system. Design structure of one department may be different from the other, since each department is interacting with the environment in a different manner. The overall objective of organisational designing must be integration of activities and relationships and authority roles existing in different departments.