Organizational design refers to the process of structuring and aligning the different components of an organization, such as its hierarchy, roles, tasks, and processes, in order to achieve its goals and effectively carry out its operations. It involves determining the optimal structure, workflow, and communication channels within an organization to enhance efficiency, flexibility, and collaboration among its members. Organizational design is crucial for optimizing performance, fostering innovation, facilitating decision-making, and adapting to changes in the business environment.