Over the period of time, organizations have evolved and so do the organizational designs and hierarchies. With the advent of globalization and emergence of international organization the overall orientation of the organizations has changed too. The overall competitive environment has become more difficult too and as organizations must have to evolve organizational structures, which can support them to manage the competition.
It is because of this reason that organizations are now more of knowledge organizations rather than traditional organization based on linear or horizontal hierarchies. When an organization makes a shift towards knowledge based organization, it characterizes a structure in which information flows among members having a very limited level of cognitive skills. Such type of structure is often called architecture and helps organizations to overcome traditional weaknesses by selecting better strategic alternatives.
A design based architecture organization is therefore, beneficial for achieving long term objectives of the management while at the same time managing and achieving the shorter term goals also. It is critical to understand that viewing organization as design architecture is important for information flow purposes. In an organization which is based on design and architecture, the managers often base their decision making on different alternatives, which are evaluated in more meaningful manner due to availability and flow of information.
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Further, to identify the tools and techniques for implementing the best design allow organizations to develop the overall competitive advantage. However, what is also critical to understand that managers must evolve a design which supports the overall strategic objectives of the firm because failure to design an appropriate structure may result into lost competitiveness besides spending too many resources on developing a structure which failed to properly respond to strategic challenges faced by the firm.
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