We are independent & ad-supported. We may earn a commission for purchases made through our links.
Advertiser Disclosure
Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.
How We Make Money
We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently of our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.

What Are the Different Organizational Design Models?

By Osmand Vitez
Updated May 16, 2024
Our promise to you
SmartCapitalMind is dedicated to creating trustworthy, high-quality content that always prioritizes transparency, integrity, and inclusivity above all else. Our ensure that our content creation and review process includes rigorous fact-checking, evidence-based, and continual updates to ensure accuracy and reliability.

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

Editorial Standards

At SmartCapitalMind, we are committed to creating content that you can trust. Our editorial process is designed to ensure that every piece of content we publish is accurate, reliable, and informative.

Our team of experienced writers and editors follows a strict set of guidelines to ensure the highest quality content. We conduct thorough research, fact-check all information, and rely on credible sources to back up our claims. Our content is reviewed by subject-matter experts to ensure accuracy and clarity.

We believe in transparency and maintain editorial independence from our advertisers. Our team does not receive direct compensation from advertisers, allowing us to create unbiased content that prioritizes your interests.

Organizational design models detail how a company organizes the individuals and operations within its facilities. Many different types of design models exist, with companies selecting whichever one works best for them. The different organizational design models often start with either a flat or tall structure. Then, the organization can use a design model to create specific departments within the company to accomplish activities. Owners and executives tend to drive this process in most cases, though a bottom-to-top approach may occur.

Flat organizations usually have few management layers. Companies use these organizational design models to encourage employees to take on more responsibility. A flat structure can also prevent micromanagement, with fewer managers able to control an employee’s specific actions. Owners and executives can also keep their fingers on the pulse of the company as fewer levels exist between them and the frontline workers. When left without proper supervision, however, these companies can become ineffective.

Tall organizations have many more levels of management when compared to flat organizations. More management allows for better control, though more bureaucracy is a side effect. This prevents a company from working smoothly at times as lower-level employees have to wait for certain decisions from upper management. These organizational models also have more tendencies for micromanagement if the owner allows managers to be directly involved in daily activities. The inclusion of more management positions can also increase costs to the organization.

A company often stresses three important attributes in organizational design models: excellence, people, and communication. Excellence means that poor quality or workmanship is not acceptable in a process. A focus on people helps a company work together better by creating strong relationships among workers. Communication is necessary to inform all workers about various activities in the company. In most cases, companies can experience one or all of these at some level in design processes.

Companies must also put together strong processes for implementing organizational design. Having a repeatable activity ensures that all design processes follow the same steps to success. Steps can include setting the stage, gathering data, designing the transformation, and implementing and evaluating the process. Each stage includes a different set of knowledge, skills, and abilities for completion in the best manner possible. While a company may use only internal staff, external agencies can help put together these organizational design models if necessary.

SmartCapitalMind is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.
Discussion Comments
SmartCapitalMind, in your inbox

Our latest articles, guides, and more, delivered daily.

SmartCapitalMind, in your inbox

Our latest articles, guides, and more, delivered daily.