Organizational Design and Innovation: A Case Study Analysis

This report examines organizational design, focusing on how innovation, leadership, and resource allocation impact organizational success. It explores the relationship between leadership styles and the encouragement of new ideas, the importance of adequate resources for innovation, and the role of organizational culture in fostering or hindering innovation. The report uses examples such as Nokia to illustrate how a lack of innovation can lead to decline, highlighting the significance of embracing new ideas and implementing effective strategies. The analysis emphasizes that organizational design directly affects innovation, influencing a company's ability to compete and grow. The report references academic sources to support its findings and provide a comprehensive understanding of the subject.

Running Head: Organizational Design 1
Organizational Design
Name
Institution

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Organizational design refers to creating, adjusting or changing the structure of an
organisation. Organizational structure is changed to fit in the current environment.
Organizational life cycle refers to the sequence of advancement of an organisation from its
creation to growth phases and termination. Organizational decline is experienced when an
organisation fails to adhere to its environment in a positive way, slowly by slowly becoming
bankrupt and leading to its closure. Innovation means introducing and implementing new ideas
to create new goods or services that are of value.
Innovation has really helped many organizations to outdo steep competition and manage
to explain in terms of growth. The design of an organisation can affect its innovation either
positively or negatively depending on many factors. To begin with, the leadership hierarchy-
senior leaders should embrace innovation in their organisation (Australia, 2015). This will only
succeed if they have good relationship with their juniors, be able to take their ideas and support
them for creation of new goods and services. Secondly, availability of resources-there must be
enough resources for use. No matter how good ideas an organisation has, if there are no enough
resources ,that is, time or money ,to support and implement the innovation then no real
innovation experienced.
On the other hand, some organizations for example Nokia, phone makers company, lack
innovation or a decline in their innovation level. This is due to their culture. The organisation
doesn’t take new ideas from the workers, neither are they willing to sponsor the innovation nor
motivate them. Instead they criticize them by saying that their innovation goes nowhere. To add
on, the strategy and methods used are very poor (Bolman, et al, 2003). They don’t allow
collaboration where everyone gives his or her own opinion towards an idea. They practice
authority from above and that’s why Samsung company defeated them.

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References
Australia, C. L. (2015). Organization Theory and Design. Cincinnati OH: Cengage Learning
US.
Bolman, L. G., & Deal, T. E. (2003). Reframing organizations: Artistry, choice, and leadership.
San Francisco: Jossey-Bass.