The process of selecting and instituting an organizational structure, rewards, penalties, and policies, procedures, and practices appropriate to the organization's strategy and operating environment is known as what?

The process of selecting and instituting an organizational structure, rewards, penalties, and policies, procedures, and practices appropriate to the organization's strategy and operating environment is known as what?

• A. Organizing
• B. Organizational design
• C. Organizational development
• D. Organizational structure

Answer: (B)

Organizational design is the process of selecting and instituting the structure, rewards, penalties, and the policies, procedures, and practices that align with the organization's strategy and operating environment. It involves deciding how to arrange tasks and roles, establish reporting relationships, and set governance and incentive systems so that the whole organization can execute the strategy effectively in its external context. This goes beyond just the formal structure or the act of organizing resources. It encompasses how incentives and rules reinforce the chosen structure and strategy, and how these elements fit with the external environment. Organizational design differs from organizational development, which focuses more on planned change and improvements in people, culture, and processes, and from organizational structure, which is the end arrangement itself rather than the full process of creating and implementing it.

Organizational design is the process of selecting and instituting the structure, rewards, penalties, and the policies, procedures, and practices that align with the organization's strategy and operating environment. It involves deciding how to arrange tasks and roles, establish reporting relationships, and set governance and incentive systems so that the whole organization can execute the strategy effectively in its external context.

This goes beyond just the formal structure or the act of organizing resources. It encompasses how incentives and rules reinforce the chosen structure and strategy, and how these elements fit with the external environment. Organizational design differs from organizational development, which focuses more on planned change and improvements in people, culture, and processes, and from organizational structure, which is the end arrangement itself rather than the full process of creating and implementing it.