Organization Structures for Strategy Implementation
An organization and its structure vary from company to company. Depending upon the objectives, an organization can be structured in different ways. The structure of an organization determines the way in which it operates and performs.
The structure in a way contributes to the achievement of common aim. Most of the organizations have structures which are hierarchical in nature, but not all. Organization structure allows for different functions and pressures to different entities, viz., departments, branches, work groups or individual. Individuals are normally employed or hired under time-limited work, contracts or work orders, or under permanent employment contracts. Organization structure can be formal or informal.
Organization structure types:
Pre-bureaucratic Structure: Centralized. Seen in small companies. Lacks standardization of tasks. Suits new organizations for owner to have total control.
Bureaucratic Structure: Some standardization is seen. Ideal for complex and large organizations. Suits hierarchical organizations.
Post-bureaucratic Structure: Not bureaucratic in functions. Decisions are taken on consensus, and dialogue than on authority. More a net-work than hierarchy. Horizontal decision making process. More of participation and empowerment.
Functional Structure: Each division/employees function for specialized tasks. Could lead to lack of communication and being slow.
Divisional Structure: Divisions can be geographical or in product/service basis. Each division within a divisional set-up contains all resources and functions within.
Matrix Structure: This groups employees by both function and product. Uses groups of employees for the strengths and to make up for the weaknesses. Matrix structure is one of the best form for an organization.
Flat Structure: Common in entrepreneurial start-ups. Later becomes hierarchical; becomes bureaucratic.
Team Structure: This is flexible type, and as a team performs designated tasks. The team defines the entire organization. Even large bureaucratic structure use team structures to benefit
Net-work Structure: Contracts are out-sourced, and the business functions can be done better and cheaply. Electronic means are used for coordination and control of external relations.
Virtual Structure: Inter-net is used for boundaryless organization. A small organization can operate globally to be a market leader in a niche. A number of niche markets make the company highly profitable and the cost of reaching the customers and clients is dramatically cheap.
Structure is the design of the organization through which strategy is administered. Sometimes, change in the organization strategy leads to new administrative problems which in turn require a new or re-fashioned structure for the successful implementation of new strategy. Organizational structure has to align with organization strategies and must integrate strategy formulation and implementation.
Organizations use `strategy implementation model`, `strategic change`, `human resources and strategy implementation`, `strategy and structure` and `incentives and control`, for effective implementation of strategy through organization structure.
Strategy affects structure, and the choice of structure affects efficiency and effectiveness.