Selecting an Organizational Design

Most modern organizations follow one of five organizational structures. These structures are simple, functional, divisional, matrix and network. A corporation may also use any combination of the five structures to support short to long term strategy. <Tab/> <Tab/>According to Wheelen and Hunger, simple structure has no functional or product categories and is appropriate for a small company, such as a sole proprietorship. Functional structure is appropriate …

…organization. Research has shown that companies in similar industries do tend to organize in similar fashions, but not exactly the same. I also agree with Chandler, structure does follow strategy. I have seen that first hand with Sears. Corporate will set forth a new strategic direction for the company, followed by changes in how the employees are structured. Organizations must implement the design changes that are needed to keep the company both profitable and competitive.