Why is it very important that strategy and structure are properly matched together?
Strategy is nothing but the plan of action made to meet the overall goal of an organization Strategy provides proper direction to business in meeting the goals. Organizational structure refers to activities such as coordination and supervision that are important for achieving the organizational goal. Organizational culture and structure must fit because different structures gives rise to different behaviors. Structure can help in achieving the terminal values. So it is important to design structure keeping in mind the culture and what outcome is expected.
The organization structure depends on factors like size of the company, diversity of operations and the environment in which the organization operates. The external environment is one of the important factor for organizational structure. These aspects include uncertain conditions, external resources and competitors.
It is very important to match the strategy and structure properly because: -
Why is it very important that strategy and structure are properly matched together?
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