Organizational Design

Organizational structure is the basic outcome of the implementation of hierarchies. Hierarchy is a system in which members of an organization are ranked according to relative authority in vertical segments. The two main types of organizational forms are mechanistic organizations and organic organizations. Organizational processes are directly linked to the strategy of the company since they are the main source for delivering value to customers both internally and externally. Digital transformation is the implementation of digital technologies to transform production and organizational systems. This chapter discusses the tools from the management science field that can be employed to support the design and optimization of organizational structure and process. They are network analysis for organizational structure design, business process modeling, improving manufacturing productivity using analytics, and how artificial intelligence can address the soft side of organizations.