The paper 'Organizational Design, Structure and Strategy - Airstar" is a good example of a management case study. Organizational design and structure serve as the foundation upon which business operations are built including important factors such as formal managerial hierarchies and grouping of employees within different functional areas. O'Reilly and Tushman (2004) have defined organizational structure as an organization’ s basic operational framework as characterized by its degree of formalization, complexity and centralization (decentralization) of decision-making authority. O'Reilly and Tushman (2004) have also defined organizational design as the continuous changing or development of an organization’ s structure.
Well executed organizational designs can allow the organization to develop strong corporate cultures and grow in response to changes in the marketplace. The organizational strategy involves contingent plans on how to move an organization forward. An organization’ s strategic objectives may involve diversification, growth, increased attention to customer service, reduction of labor costs, or increased turnaround times for product delivery (Rivkin & Siggelkow, 2001). Securing an appropriate path for achieving these goals and objectives should be at the core of the organizational strategy. For example, if an organization needs to reduce labor costs, it may consider restructuring its staff to avoid reduplication of duties.
Similarly, if the goal is to offer the best customer service experience, the organization may decide to beef up call centre service by opening more positions. All these constitute an organizational change and have a direct influence on organizational strategy. According to Sutcliffe, Sitkin and Browning (2000), effective organizational structure and design are merely detailed articulation and support for organizational strategy. A clear alignment of organizational design and strategy translates the goals and objectives of the business into tangible, executable plans.
Organizational structure and design fulfill a number of important functions. First, the organizational structure allows harmonious division of work into specific job requirements and departments.
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