Chapter_11_notes - Florida Institute of Technology -...

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Florida Institute of Technology - College of Business Management Principles, BUS 3501-01 Spring 2010 Instructor: Ravi K. Sundararaman Chapter Notes - Chapter 11: Organization Design 1. Organization structure is a function of: a. Strategy – Goals dictate strategy, which in turn, dictate org structure. Org structure is a means to achieving goals of a company. It thus stands to reason that structure follows strategy. Companies typically start with one product or service necessitating a simple or organic org structure. As growth occurs, multiple products/services and strategies follow leading to more complex org structures. b. Size – Larger size or scale also leads to more detailed processes and procedures and more formal org structures c. Technology – Technology means internal technologies, tools, methodologies and processes and competencies. Young, immature companies have simpler goals and mandates and usually possess simpler technology. They tend to be focused and nimble on specific goals and have limited means to pursue their goals. They
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Chapter_11_notes - Florida Institute of Technology -...

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