Sba-Reaction Paper (Week 7)

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REACTION PAPER: Organization Structure and Strategy

Buchanan and Huczynski (2004) view strategy and Structure as "mutually


interdependent", and structure as a vehicle for implementing strategy. The structure is important
as a means of getting people to work towards common goals thus acting as a facilitator in pursuit
of organizational goals. Looking simple but the organization will have to make sure that
employees identify with organizational thoughts and willingly forgo personal interests. Thus,
putting greater burden while designing a structure that accommodates employees and harnesses
an environment where the staff takes organizational goals as their own and share belief of being
valued through their work, hence good structure should provide the right blend of command and
control plus employee independence without the feeling of resentment that hinders organization
pursuit of its mission.

Superior structure promotes cultural values; cultivates integration and coordination as it


seeks to strengthen the relationship of individuals and tasks. Jones (2007) notes that from this
relationship emerge norms and rules contributing to improved communications and common
language that improves team performance. Contrary to Jones, Turner (2006) points to structure
as the primary reason why organizations struggle with cultural change as this structure often
boxes people in old-styled formations which are not aligned to new business philosophies.
Organizational environment influences strategy and structure. Strategy-structure relation owes a
great deal to Alfred Chandler. He called the strategy a determination of long-term goals and
objectives and called it a means to administer structure. Changing an organization's strategy
leads to administrative problems which require refashioned structure for successful
implementation of a new strategy. Thus, if the ideas of Needle and Chandler are linked, a 3-item
relationship is established whereby at the top its 'Environment' in which business operates, which
affects 'Strategy formulation', followed by 'Structure' dealing with the allocation of resources,
responsibilities, and authority. Mintzberg identified 5 parts of the organization, one of them is
Strategic Apex, For Mintzberg strategy is the interpretation of the environment and managers
develop strategies to deal with the environment but Mintzberg contrary to chandler's views
points that Manager's at the strategic apex. CEO/Top Management considers both External and
Internal Environments for formulating strategies (Strategic Management) whereby the first
official Mission is identified followed by Operational Goals and Strategies. The next step is to
design the structure. It is important to note that daft refers to the relationship between Structure
and Strategy as Two-Way, where Strategy affects Structure.

The relationship between organizational structure and strategy becomes clearer when the
company's strategy is in place. With a clear focus on what it wants to achieve, the organization
will proceed to align its structure in such a manner to best achieve this. It will allocate
responsibilities for optimal results, create branches, and decide whether individual efforts or
group participation is the best method for it to achieve its goals. The organizational structure and
strategy will also help the company decide if the tone of the company should be strictly formal,
semi-formal, or informal. All of these decisions can be made after determining the organizational
strategy of the company.

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