This paper focuses on the redesign of the No-Limits Design Studio’s layout with a view to improve its organisational efficiency and effectiveness. It was found that the studio’s existing layout resulted in employee stress, low employee motivation, low customer satisfaction, and also to employees not performing at their full potential. Data were collected using interviews, to reveal the problems that existed within the studio from both the customers’ and employees’ viewpoints. Non-participatory observations were also conducted and these focused mainly on the studio’s daily operations and activities over a period of one year through action research methods involving on-the-job experiential learning. The study demonstrated that, for an organizational layout to be effective, the organization has to plan the desired layout, implement the layout according to the plan and integrate it to form part of the organization’s culture. It was found out that the studio should redesign its layout, focus on the motivation of employees and improve conflict management strategies in order to improve its organizational capabilities.