Organisational designand development
This describes the planned and systematic approach to enabling sustained organisation performance through the involvement of its people. Organisational design and development activities include organisational redesign and restructuring, organisation strategic alignment, and job design.
Common measures
Management ratio/ Span of control: this measures the ratio of subordinates per manager; it is a measure of management depth and breadth (see SABA research for more details).
Total management and non-management population / total management population with direct reports
Strategic delivery: this measures the number of strategic priorities delivered within the stated timescale as a measures of organisational effectiveness (see here for more details).
Number of priorities delivered; Number of priorities outstanding
Goal consensus/conflict: this is a measure of consensus and conflict between organisational goals and priorities and individual objectives. It is a measure of co-operation between teams and departments.
Number of goals in conflict vs number of goals in consensus
Evaluation of organisation development activity: a measure of the impact of organisation development investment, including through return on investment, and additional programme key performance indicators
For example, measurement of the change/uplift in specified KPIs following development activities
Further research
Research by the Boston Consulting Group explores the three areas they believe are crucial to any organisational design programme: structures, individual capabilities, and roles and collaborations.
Read their full paper: Demystifying Organisational Design: Understanding three critical elements
Resources description
The management and measurement of organisational design and development activities help businesses to better understand the value of investment in organisational improvement programmes.
For more information on organisation design and development, visit the CIPD factsheets below: