Organization Design for the Newly Established Function

Abstract

This Thesis focuses on organization design of the case organization that is needed due to the case company re-organizing its processes. The change from a matrix organization to a line management organization has been implemented but the processes, functions, roles, responsibilities and hierarchical structure still need to be defined for one particular function.

The study is conducted by using Action research approach. The data was collected in three phases. The most important data collection methods were qualitative interviews, co-creation workshops and discussions. As a result of the current state analysis, the study reveals the status of the organization design in the beginning of the study. The outcome of the study is the organization design that will be put into implementation immediately after the end of the study and the next steps to create competitive edge by utilizing the new organization design.

Before the solution is built, the study extensively explores the field of organization design in order to reveal the key building blocks of the organization design, understood from two different aspects: first, organization design does not equal an organization chart which is changed from time to time. The main building block of the organization design is the organizational structure. Hence, the study ignites the discussion if the organizational changes take place in the correct building blocks of the organization design, such as its structure. Second, the study relies on the organizational change for functional departments which excludes interfaces to other departments. The results of the study are significant for the case company because they create the basis for the organization to be able to deliver to the customer.