Organization structure and strategy implementation

1. Using structural design to achieve strategic goals As organizations grow, they add new departments, functions and hierarchical levels. A major problem is how to tie the whole organization together. Chain of command work specialization and departmentalization can be not sufficient to coordinate a big organization. Lateral coordination mechanisms provide coordination across departments. They are …

Departmentalization in management

Departmentalization – the basis on which individuals are grouped into departments and departments into total organizations. There are 5 approaches to structural design that reflect different uses of the chain of command in departmentalization. 1. Functional approach People are grouped together in departments by common skills and work activities such as in an engineering departments an …

Organizing the vertical structure

Organizing is the deployment of organizational resources to achieve strategic goals. Organizational structure defines how: Tasks are divided; Resources are deployed; Departments are coordinated. A fundamental principle in organizations is that work can be performed more efficiently if employees are allowed to specialize. Work specialization is the degree to which organizational tasks are subdivided into …

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