Organisation design shapes people processes and is a key competency on the CIPD Profession Map. As such, HR practitioners need to understand how organisation design shapes an organisation’s structure. Although there is overlap between organisation design and organisation development, the factsheet highlights the distinction between the two.
The factsheet defines organisation design within the context of organisation design theory and examines the common types of organisational structures: Functional, geographical, product-line based, customer/market-based, and matrix. The factsheet concludes by examining the factors influencing the choice of organisation design, including organisation design and business objectives, organisation design and culture, and people processes.