Strategy shapes the organizational structure of any organization
Chapters 5, 6, and 7 Strategy shapes the organizational structure of any organization. When the management of a firm is developing a corporate strategy, they start by analyzation of the industry and the environmental condition in which they operate. One may think since they know where they are going, then they can think of building the organizational structure as the starting point. But it is not efficient hence the need for the following strategy since it drives organizational structure. Strategies involve designing an organization, development of role and responsibilities, as well as selection of the right individuals and nuanced roles of the leaders. This is the only way of designing an organizational structure by laying down strategies. Strategies come first, then the firm follows hence the saying that strategies drive structure. Beginning an organization, one must ensure that strategies begin then the organization follows. At first, one can start with a simple yet broadly defined strategy for effectiveness. After the development of a good strategic plan, then organizational structure and talent needs can also be developed in a simple way, like following a blueprint.
In chapter 6, there are current challenges in designs, which include an understanding of what exactly business competencies are and the design of an organization that enhances their effectiveness as it mitigates the risks. Additionally, it is challenging to understand how organizational design interacts with the working environment. It is challenging to understand recruitment, retaining, and product development processes. What is more challenging currently is the practical implications of change itself and how to create a new movement into the organizational design, enhancing the health of the organization.
From chapter 7, one can design a flexible organization through the use of matrix structure, which is the combination of functional specialization focusing on divisional structure. Its potential advantage is that it increases flexibility and offers better performance accountability providing better strategic management. Further, one can use team structure for ensuring the organization’s design is flexible since it enables the intradepartmental barrier to break down and speeds up the decision-making process. Additionally, network structure can be used for enables an organizational design that is flexible and helps in the reduction of overhead due to the size of staff can be reduced.
A real-life example is where an organization uses a matrix structure wherein the organization all the employees belong to two formal groups at the same time. Then these teams report to their bosses. One group will be a functional group, and the other will be within the team. This approach will help in increasing the employee’s motivation and flexibility.
Part 2
The following are interview questions that help in exploring the different issues of structure, learning, and performance of an organization.
The interviewee is the organizational manager of a firm.
Should one start with strategies of an organization before designing the organizational structure?
How exactly does strategy drive structure?
How important are flexible organization designs?
What approaches can be used for designing a flexible organization?
What exactly are the current organizational design challenges?
How can these challenges be addressed?
What should influence in influencing the organizational structure of any organization?
The rationale for choosing an organizational manager is due to different reasons. They have enough knowledge of organizational structure. Hence, they are the logical interviewees for answering any organization structure question. Further, they know how strategies drive structure and how having a flexible organizational structure is critical for any organization. It helps in the modification of the means of attaining the set goals. The organizational manager has critical knowledge of the right strategies that should be laid down to come up with the right organizational design. They understand the current challenges that are facing organizational design.