What are the key factors that influence the selection of an organizational structure?

Question:

What are the key factors that influence the selection of an organizational structure?

Organizational Structure:

An organizational structure is a developed system of all the activities that lead to achieving the goals and objectives of an organization. Further, organizational structure focus on resource allocation and coordination.

Answer and Explanation:

There are many types of organizational structures. Like, divisional, functional, Team, Matrix, and networking.

Following are some key factors that influence the selection of an organizational structure:

  • Top Management style: Top management attitude and style influence the selection of an organizational structure.
  • Environmental Differences: Organizational structure influenced by external and internal environmental forces.
  • Size of an organization: Selection of the organizational structure depends upon the size of the company in terms of employee size, and investment size.
  • Technology: Technological advances influences the selection of the organizational structure and system, and so on.

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Strategy and Organizational Structure

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Chapter 5 / Lesson 3
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The method of an organizational structure dividing, grouping, and coordinating tasks is composed of different elements. Explore why structures differ, cost minimization, innovation and imitation strategies, and ways organizational structures change.


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