ORGANIZATIONAL DESIGN, MANAGEMENT AND COMPETITIVENESS

The significance of the design is to create such a model of the organizational structure that will enable the company to best create value both for shareholders and for the employees as well as consumers. The company that creates value reflects its strategic commitment to survival in the long term. Such companies whose management structure designing strategic long-term orientedorganization, provides the necessary effectiveness. Efficiency will fail if managers choose the wrong choice model of organizational structure, a wrong choice generates increased costs and employee dissatisfaction. The process of designing the organizational structure involves two distinct activities of the manager selection, the choice of differentiation that the organization is divided into organizational units and the choice of integration that connects parts of the organization in totality. The choice of a pronounced differentiation creates a need for more of the perpetrator, the greater the difference between the parts of the complexity of the coordination mechanism, an increase in costs and lower efficiency of the organization. The managers the challenge of finding a balance in establishing a proper balance between differentiation and integration. Employees with their decision to engage in work of a particular organization, voluntarily adopt organizational rules and hence the norms of behavior. However, the process of organizational design may result in increased differentiation, which determines the need for formalization and standardization. For employees this means an increase of procedures and rules, which naturally reduces employees kreirativnost and innovation which often results in the creation of dissatisfaction, frustration, and a decrease in individual and organizational performance. Highly differentiated and integrated organization is characterized by reduced participation of employees in decision making and low employee satisfaction, and vice versa. Of course this does not necessarily mean a rule for every organization, but as an opportunity, for the simple reason that each organization expresses its specificity with profiles of employees and their expectations. People are actually individually different and therefore have different attitudes towards greater specialization, centralization, formalization and control. The conclusion is that decisions about organizational design in terms of creating value for employees, should take into account job characteristics and individual differences in terms of qualification, age, experience, skills, value systems, and the like. Otherwise, inappropriate structure will cause a general decline in company performance. Model of organizational structures created in the process of organizational design creates value for consumers only if provides requirements for high performance: high productivity, high quality, and the price that consumers are willing to pay. In choosing between possible organizational options always starts with objectives, and then search for a structure that will support their achievement.