Organizational Structure And Its Impact On Organizational Strategies

In a hyper competitive market, the ability of an organization to respond and adapt to changes i.e. threats from competing firms, they have to spread the decision making power throughout the organization. The disadvantage of this type of decentralized structure is that at some points there might be contradictory decisions being made which would cause conflict within the organization and the success of any unit would depend on the capability of the head, on the other hand, it would be advantageous in the sense that in addition to enabling organizations to respond faster to changes in the market, it also builds confidence of employees and therefore is a means of

Alternative structures such as grouping by output/product or grouping by market are not options as they would result in “duplication of activities and resources, the erosion of deep technical expertise, missed opportunities for synergies and learning” (Ancona, Kochan, Scully, Van Maanen, & Westney, 2009, p. M2-19). The matrix structure provided a potential positive aspect in that it would provide a needed cross-functional linking mechanism by mixing the functional structure with grouping by output/product, but the complexity, cost, dual systems, and dual roles resulting from the matrix structure historically resulted in either the functional or the output/product system becoming more powerful than the other.

Organizational structure determines how activities such as task allocation, coordination and supervision are direct towards the achievement of organizational goals. It can be considered as the viewing class through which individuals see their organizations and itsenvironment. The structure of the organization can be in different forms depending on

The relationship between an organization’s strategy and structure are extremely important because it “directly impacts a firm’s performance” (Rothaermel, 2013, p. 309). Also, as an organization grows, it should reevaluate the current strategy and structure to ensure that it remains the optimal choice for the organization (Rothaermel, 2013). The four types of organizational structures, listed in order of least to most complex according to Rothaermel (2013), are: (1) simple, (2)

Organizational structures have changed greatly in the last fifty years. Whereas most organizations were once rigid and centralized, most organizations are now taking advantage of flexible and decentralized structures. These new structures have affected the standard relationships between employees and managers. Additional layers of management have been created which blur the lines between the functions of managers and the functions of employees. Employees have become decision makers, and some managers barely have any authoritative power. Subsequently, these changes to organizational structures have impacted organizational strategies. This too, expounds upon the increased power of the employee and the reduced authority of the manager. The changes in organizational strategies make use of the dispersion of power in order to reduce costs and enable additional safeguards within these organizations.

The structure and design of organizations have drastically changed over the last twenty-five years. Organizations develop new goals at the beginning of the year or after the completion of previous goals, and heavily depend on planning to help achieve these goals. Planning is an integral part of organizational success, as upper management receives substantial information on various needs such as risk uncertainty, available resources, employee development, and unforeseen changes in technology (Daft, 2013). Most importantly, successful planning allows management to make effective decisions when unforeseen events arise within the organization. Not participating in planning is equivalent to taking a road trip across the country without a

The company is geographically located in most major united states locations. It employs a hierarchal organizational design. One of the contributing factors to its success is the company’s success in providing a dining experience for its customers that excel in choices, price, customer service, and serving size. The company is known world-wide for its delicious cheesecakes with the key factor being the variety.

One of the themes in Thomas McCraw’s book American Business Since 1920: How It Worked is mastering centralized control through decentralized management. As the business world rapidly expanded competition for market share between the larger companies increased. More task management was necessary in order to delegate within the businesses as they expanded. The market was also changing and as an answer to that some companies implemented a revised version of traditional management; decentralized management (McCraw, 2009).

Here is a first hand account of culture, structure and systems not being in harmony. In 1994, Ticketmaster (TM) United States became a major presence in the ticketing industry. As part of their growth strategy, they expanded through the re-acquisition of all licensees. One of the licensees was the Canadian Ticketmaster business. From 1995 to 1997, TM Canada was forced to transform organizationally to become similar to our American parent. The cultural breakdown occurred when transitioning from networked “(high on sociability; low on solidarity)” to mercenary “(low on sociability; high on solidarity)” (Langton & Robbins, 2007, p. #341-342). For example, the lack of accountability

small business can use one of three primary organization structure options: functional, divisional or matrix. Essentially, the organizational structure creates a business hierarchy to increase the efficiency and effectiveness of the business operations. Different small

To have a successful organization, companies need to have an organizational structure. Organizational structure is used as a foundation to ensure each department as well as employees knows the proper direction to take. The Home Depot is one of the largest home improvement retailers in the world. Home Depot is one company that incorporates organizational structure in their day- to -day business. The Home Depot organization will be evaluated to compare and contrast the impact of organizational structure.

The structure of an organization can vary depending on the company. This is responsible for maintaining and outlining specific duties or task within the organization. Depending on the company they can choose between a centralized or decentralized structure. Centralized organizational structures focus management authority and decision-making in a single executive team, with information flowing from top managers to various business units (Centralized Vs. Decentralized Organizational Design, David Ingram, 2017). Decentralized organizational structures, on the other hand, look more like multiple smaller representations of a single structure, featuring management redundancies and more close-knit chains of command (Centralized Vs. Decentralized Organizational Design, David Ingram, 2017). Within these, there are more specified structures with different advantages and

Simple structure configurations are starter companies. They hire top level managers to ensure the company serves its mission in the most effective way. Employees who work for these types of companies only answer to one manager which is typically the owner. These businesses mostly have a small crew that work there. These types of organizations work their way up the divisional structure. An example of this type of business would be a pet grooming. The owner is usually always present and there are no managers.

In a centralized organizational structure one individual is responsible for making all the decisions and maintains control of the company by giving direction. While Decentralized organizational structures often rely on several persons with the authority to make final decision for the company’s well being. Some benefits associated with a centralized organization are as follows: Reduction in cost in the work environment, having a focused vision on one common goal and Reduction in conflict. A Few drawbacks of a centralized organization include, No secrecy because all ideas and decisions are conveyed to all, No special attention and Delay in work. Advantages associated with Decentralization are; Huge relief is provided off the top managers, Greater use is made of employees skills and Decision making is left up to educational and well informed people.

The structure of an organisation is built in order to achieve the distinct tasks by the labour and coordination between teams to provide goods and services. Organisational structure is selected in order to have a basic work and consistency according to the situation. The most foremost factors in an organisation are skilled labours, mutual understanding among the fellows and direct control to frame a good result. A good structured organisation results in quality production, which can be taken into peoples consider through marketing. When an organisation tracks in a solid structure, management plans and tasks can be easily constructed and executed. In this essay, I have been explained about the concept of Mintzberg five