Organization design is the process of structuring the organiza-tion in a way that facilitates employee productivity and supports the organization in reaching its goals. The basic building blocks of organizational structure are division of labor, centraliza-tion of authority, and formalization. The organization can also be departmentalized functionally or divisionally. However, the requirements of today's electronically-enabled organizations have resulted in changes in the way that some organizations are structured. Matrix, network, and even virtual approaches are becoming more common. Organization design is an iterative process, however. As the organization grows and changes, the design may need to be reconsidered in order to keep the organi-zation competitive.
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