1. Experts say that organisations are becoming increasingly decentralised, with

Question

1. Experts say that organisations are becoming increasingly decentralised, with authority, decision-making responsibility, and accountability being pushed further down into the organisation. How will this trend affect what will be asked of you as a new manager? Some academicians and some industry practitioners have suggested that structure should be designed to fit strategy. Some theorists argue that strategy should be designed to fit the organisation’s structure. With which theory do you agree?

Explanation / Answer

I agree with the statement that organization stategy should be designed to fit the strategy.

explanation- Organization structure is understood as the role and responsibilities allocated and supervised to the individuals and the groups in the aim of aqchieving the organizational goal. The organizational structure can be divisional, functional, geographical and matrix based on the stategy fixed by the top management.

organizational strategy is understood as the sum total of all the actions taken by the organization to achieve the long term goals of the organization. All the actions arise from the organizational strategy as a result of company's mission and vision. The mission is guiding the strategic decisions of the organization where as the vision describe the achievements in fulfilling its mission. Top management level creates organization strategy to fulfill the mission and the middle & lower level management adopts plans to fulfill the overall strategy. The roles and responsibilities of the organization structure is designed to achieve the strategy fixed by the top management.

The organizational structure includes centralization, job description, salary and expansion which is affected and changed as per the type of strategy. The strategies can be growth srtategy, product differentiation strategy, price skimming strategy and acquisition strategy which demands change in the structure of the organisation. e.g. in growth strategy suppose the increase in product line or new product development, will create the decentralize of authority and in turn accountability as expansion of the business.

so the organization structure is designed to fit the organizational strategy

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