Process Management & Organizational Structure.pdf - Process Management Organizational Structure!Understand the link between company governance

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Process Management & Organizational Structure !Understand the link between company governance, structure and strategy and evaluate organizations based on strategies. The dominant view has always been that structure follows strategy but in reality, the relationship is not linear and one directional. The direction of influence between strategy and structure can be complex and flow in both directions. Think of an organisation with a deep bureaucratic structure where decision making is centralised at the top, that is trying to be innovative and agile in its market responses. The structure is likely to affect this strategy negatively. An organization’s strategy is its plan for the whole business that sets out how the organization will use its major resources. In other words, an organization’s strategy is a plan of action aimed at reaching specific goals and staying in good stead with clients and vendors. On the other hand, an organization’s structure is the way the pieces of the organization fit together internally. For the organization to deliver its plans, the strategy and the structure must be woven together seamlessly. In other words, organizational structure is a term used to highlight the way a company thinks about hierarchy, assigns tasks to personnel and ensures its workforce works collaboratively to achieve a common goal. The goal is to avoid task overlap and workforce confusion, especially when it comes to laying a strong foundation for long-term productivity. Task overlap, a situation in which two or more employees perform the same task in different departments, costs a company money. This creates confusion, inefficiencies and lack of accountability -- because no employee ultimately has a clear responsibility over who does what, where and when. It is important to highlight that for too long, structure has been viewed as something separate from strategy. Revising structures are often seen as ways to improve efficiency, promote teamwork, create synergy, eliminate or create new departments or reduce cost, including personnel. Yes, restructuring can do all that and more. What has been less obvious is that structure and strategy are dependent on each other. You can create the most efficient, team oriented, synergistic structure possible and still end up in the same place you are or worse if a good strategy is not adopted. Organizational structure and strategy are related because organizational strategy helps a company define and build its organizational structure. A company's organizational structure is based on the result of the analysis of organizational strategy. The company will use these results to determine its areas of concentration and how to position itself in order to succeed. One of the first steps a company takes in its initial stages is assessing its operational environment in order to determine the conditions in which it must operate. This involves checking out the competition, consumer trends, culture and other factors. The company will find
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  • Winter '20
  • Sovopolous
  • Management, Organizational Structure

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