Structure and Strategy

Structure and strategy are two different elements in business that are codependent on each other. The strategy helps a company build and define the structure. Combining these two effects lead to a cohesive business model that functions to achieve the company goal. (Lazarri, 2019). The structure and strategy of an organization determine the behaviors of its employees. Managers deliberately structure resources and people to achieve both efficiency and effectiveness toward the goals of the organization. (Daft, pg 25; 2016).

Daft describes a mechanistic design as an organization characterized by machine-like standard rules, procedures, and a clear hierarchy of authority. These kinds of organizations are highly centralized, with most decisions made at the top. On the contrary, an organic design has fewer rules, more loosely applied, with employees having more authority in decisions. (pg 30-31; 2016).

There are varying contingency factors that determine the success of an organization. Specifically, during change, for an organization to be effective, there must be a balance between the design, contingency factors, and work to achieve goals. (Daft, pg. 29: 2016).

References

Lazarri, Z. (May 2019) The Strategy and Structure of an Organization. Houston Chronicle, Business Planning, and Strategy
Daft, R. (2021). Organization Theory and Design 12e: Cengage Learning