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Words: | Submitted: Fri Jan 28 2005
... on the concept of 'fit': Certain strategies and organizational designs do fit one another and the environment, and thus produce good performance, and others do not. Moreover, there are frequently recognizable, understandable, and predictable relations among the environmental features and the choice variables of strategy and organization that determine which constellations of choices will do well and which are less likely to do so. These relations arise for both technological and behavioral reasons. Recognizing these relations and understanding their implications can guide the design problem." The factors that what structure is to be chosen depends on the shape, specialization, distribution of power and departmentalization .Shape is determined by the number of people working in each control level, while specialization includes different specialties that shall be performed in the organization. Distribution of power refers to vertical and horizontal distribution of power .Horizontal distribution signifies more and more power of decision making to sub ...
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