Strategic Organizational Structure

Developing a strategic organizational structure serves as an important business management task. The key to an effective business structure entails building the structure around the business' needs. Both informal and formal communications can indicate these needs.

History

Business management use to have a "one size fit all" attitude about organizational structure, according to Northwestern University. However, as the business landscape changed to become more global and customer centric, individualized business structures replaced the "one size fit all" philosophy.

Types

Strategic organizational structure types include simple structure, functional structure, and multidivisional structure. The simple structure evolves around powerful management, while the functional structure involves delegating power to others. The multidivisional structure separates a business into different operations, treating each as an individual organization.

Benefits

Each strategic organizational structure type offers distinct advantages over others. For instance, simple structure allows for quick decision making, while functional structure reduces stress on managers by delegating out responsibilities. Multidivisional structures help keep large organizations, like national and international companies, organized.

References

• Northwestern University: Strategic Organizational Management
• University at Albany: Organizational Structure & Control