Influence of Organizational Structure Types †MyAssignmenthelp.com

Question: Discuss about the Influence of Organizational Structure Types. Answer: Introduction Strategy can be defined as a combined and synchronized set of activities and commitments conducted by the managers which is intended to exploit the core competencies of the organization and to gain competitive advantage over its competitors (Gibbons, Scott and Fhionnlaoich, 2015). The organizational structure can be defined as the formal reporting associations, processes, regulations, authorities and decision making processes of the organization. The structure of the organization comprises of three elements viz. control structures, administrative structures and accountability structures. Control structures include the mechanism for assessing the performance of the human resources employed in the organizational structure. Administrative structure defines the classification of labor on the basis of tasks in the organization whereas accountability structures explain the allocation of responsibilities and authority to people in the organization (Bielawska, 2016). So, in this literature review, the various aspects of the relationship between the strategy and organizational structure will be stated along with the analysis of the findings present in the review. According to Maduenyi et al. (2015) the organization cannot exist without a proper structure. The goal of organizational structure is the allocation of the duties and responsibilities among the human resources and the synchronization of their activities to accomplish the objectives of the organization. The organizational structure comprises of the level of horizontal integration, layers of hierarchy, centralization of power and methods of communication. As per Ajagbe et al. (2016) organizational strategy can be explained as the direction and the scope of the company over a long period of time thereby assisting the organization to benefit with the help of alignment of resources. There are various components of the organizational strategy which aligns the organizational structure to accomplish the goals of the organization. It comprises of the mission statement which defines the purpose of the existence of the organization. The vision refers to the projected state of the organization in the future. The objectives intrude the discipline in the strategy. They determine the specific goals of the organization over a period of time (Waribugo and Etim, 2016). Therefore, the strategy and the structure should be aligned to achieve the goals and objectives of the organization. The transformations in the operating environment of the company and its structure must be aligned to harmonize with the organizational strategy so that the company can confront the dynamic and volatile forces operating in the industry in which it operates. The coordination of the strategy, structure, environment and the core competencies of the organization is known as Strategic Fit (Kalay and Lynn, 2014). It is a universally accepted position of many scholars that Structure follows Strategy. It suggests that every commercial activity in which the firm is involved is based on its strategies. Thus it is the main factor for the development of the organizational structure. The structure of the organization is one of the important means through which the strategy is implemented to create equilibrium between the firms competence and efficacy. The Strengths and Weaknesses of the Concepts of the Relationship between the Organizational Strategy and Structure and their Contribution to Knowledge The relationship between the organizational structure and the strategy play an important role in the success of the company. For the accomplishment of the objectives of the company, the mission, vision and objectives are interlinked to its divisional, departmental and individual goals .Thus the new strategies require a modified structure if the organization has to be operated successfully. An appropriate match between the strategy and the structure results in high performance in the company (Daniel, 2015). According to the opinion of Neis, Pereira and Maccari (2016) the success of the transformations in the strategy of the organization is also dependent on the changes in its structure. The relationship of the cause and effect between the strategy and structure can be seen in the organizations which implement the strategies of vertical integration. As and when the management of the company decides to assimilate the new production processes in its production strategies, a need for the new and modified organizational structure emerges. But this aspect also has some weaknesses. Sometimes the strategy and structural relationships may result in certain complications which may be difficult to cope up within the dynamic environment of the industry in which the company operates. The complexity of the strategic changes needs to be managed properly rather than imposing an organizational structure as it may be inappropriate for the evolution of the innovative strategies (Nickols, 2016). Also, the organizational structure can be created or modified for the wrong reasons. It may result in the failure of the planning and re-planning efforts. The interrelation and coordination of the various structural units can be incomplete. The connection of the organizational strategy with the modified structure may be ambiguous or non-existing in some cases (Jani?ijevi?, 2013). The top management cannot implement a new strategy and direction and expect the organizational structure to be molded immediately. To apply the strategic shift, a complete transformation is required within the organization itself. The change in the strategies must be based on the cause and effect analysis on the goals of the organization. If it is not well executed then it will result in the failure in executing the strategies of the organization. Thus, the strategic transformation should support the strategy (Hunter, 2015). Analysis of the findings presented in the literature review Structure and strategy are linked to each other. The company whole making the transformations in the strategy must also consider the fact that every aspect of the structure must support the strategy. It will lead to implementing the transformations which will be everlasting. Thus the success of the strategic transformations depends upon their appropriateness (Rastislav and Silvia, 2015). Transforming the strategy pertains to transforming everything in the organization. The strategy should be changed in a desirable way which is acceptable by the management at all the levels of the organization. The organizational structure and strategy decide the objectives of the company together. With clear and defined strategies about what the company aspires to achieve, it will progress to align its structure to the best possible way to achieve the objectives. For the company to accomplish its objectives, the strategy and structures must be combined thoroughly. Structure is supported by strategy (Aleksi? and Jelavi?, 2017). If the company transforms its strategy, it must change its structures accordingly. A mismatch between the two may result in failure to accomplish the objectives if the company. If there is a failure in transformation of the structure according to the strategy, it will pull back the organization to its old strategy. If strategy is about implementing a plan, then an appropriate means of structuring the activities and resources should be found and maintained. Without the proper alignment of strategy, structure and environment, the organization may face problems in achieving long term success (Anwar, Shah and Hasnu, 2016). Thus the organization should adopt the approaches of flexibility, adaptability, creativity, empowerment and support of the team to maintain a balance between the strategy and structure (Steiger, Hammou and Galib, 2014). Conclusion Hence, to conclude, it can be said that the strategy of the organization explain the methods to accomplish the goals of the organization with the available resources and capabilities, to cope up with its threats and opportunities. For coordinating the structure with the strategies, there must be a close coordination amongst all the functions of the organization. The companies adjust their structures according to their strategies. The companies with low capital adopt the simplest structures to regulate their cost of product development costs. To accomplish their goals, there must be few layers in decision making and authority structures and a centralized focus on the process improvements. References Ajagbe , M.A., Bih , J., Olujobi , J.O. and Udo , E.E.U.(2016) Which Precedes the other? Organizational Strategy or Organizational Structure. IIARD International Journal of Economics and Business Management. 2(6), pp. 50-66. 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(2016) Strategic Planning Process and Organizational Structure: impacts, confluence and similarities [online] Available from: https://www.bbronline.com.br/public/edicoes/ahead/3112-en.pdf Nickols , F.(2016) Strategy, Strategic Planning, Strategic Thinking, Strategic Management [online] Available from: https://www.nickols.us/strategy_etc.pdf Rastislav, R. and Silvia, L. (2015) Strategic Management of Business Performance Based on Innovations and Information Support in Specific Conditions of Slovakia. Journal of Competitiveness. 7(1),pp. 3-21. Steiger, J.S., Hammou, K.A. and Galib, M.H. (2014) An Examination of the Influence of Organizational Structure Types and Management Levels on Knowledge Management Practices in Organizations. International Journal of Business and Management.9(6),pp. 43-57. Waribugo, S. and Etim, A.E. (2016) The Impact of Structure on Strategy Implementation among Telecommunication Firms in Nigeria. European Journal of Business and Management.8(14),pp. 59-68.