Introducing Organisation Design Models

Organisational design is a critical process that shapes how work is done, how people interact, and how resources are allocated in an organisation. There are many different models of organisational design that have been developed over the years, each with its own strengths and weaknesses.

Overview of 15 Organisation Design Models

In this article, we will look at 15 of the most common organisational design models and discuss their key features and characteristics.

1. Functional Model: The functional model is one of the most common organisational design models. It is based on the division of labour and is characterised by clear lines of authority and a hierarchical structure.

2. Divisional Model: The divisional model is based on the division of the organisation into separate business units or divisions. Each division has its own management team and is responsible for its own performance.

3. Matrix Model: The matrix model is a hybrid of the functional and divisional models. It combines the benefits of both models by creating a structure that allows for both functional and divisional specialisation.

4. Network Model: The network model is based on the idea of creating a network of organisations that work together to achieve a common goal. It is characterized by a high degree of flexibility and adaptability.

5. Team-based Model: The team-based model is based on the idea of creating teams of employees that work together to achieve specific goals and objectives. It is characterized by a high degree of collaboration and cooperation.

6. Process-based Model: The process-based model is based on the idea of designing the organisation around the processes it uses to create value. It is characterised by a focus on efficiency and effectiveness.

7. Customer-focused Model: The customer-focused model is based on the idea of designing the organisation around the needs of its customers. It is characterised by a high degree of customer-centricity.

8. Lean Model: The lean model is based on the principles of lean manufacturing and is characterised by a focus on efficiency, effectiveness, and the elimination of waste.

9. Agile Model: The agile model is based on the principles of agile software development and is characterised by a focus on flexibility, adaptability, and continuous improvement.

10. Holacratic Model: The holacratic model is based on the idea of creating a self-organising organisation that is characterised by a high degree of autonomy and self-management.

11. Sociocratic Model: The sociocratic model is based on the idea of creating a democratic organisation that is characterised by a high degree of participation and decision-making.

12. Open-book Model: The open-book model is based on the idea of creating an organisation that is transparent and open about its financial performance.

13. Flat Model: The flat model is based on the idea of creating a organisation with a low hierarchy and a high degree of autonomy.

14. Hybrid Model: The hybrid model is based on the idea of combining different models to create a structure that is tailored to the specific needs of the organisation.

15. Virtual Model: The virtual model is based on the idea of creating an organisation that is not physically located in one place, but is instead made up of a network of remote employees.

These are some of the most common organisational design models that have been developed over the years. Each model has its own strengths and weaknesses, and it is important to choose the right one for your organisation depending on its needs and goals, recognising that many of the models are not mutually exclusive. Ultimately, the key to successful organisational design is to create a structure that supports the mission and objectives of the organisation and enables it to achieve long-term success.

Next Steps

Want to read more about organisation design, check out:

What is an organisation design? - Understanding the basics

15 Growth Factors Leaders Must Pay Attention to

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