22 Jun 2022


How Strategy Affects Organization Design

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Academic level: College

Paper type: Essay (Any Type)

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Strategy is a laid down plan by a person or an organization with the intention of accomplishing a certain goal or objective. Benjamin Franklin once said that if you fail to plan you plan to fail and this is why modern-day organizations employ certain strategies to achieve success. Strategy and structure are closely linked since objectives are a reflection of the entire organization’s tactics. This essay will explain how strategy affects organization design and some of the key events at play. 

The goals and mission of the organization are the basis for the specification of what the organization does (Burton et al, 2003). From these set goals then a strategy is found which affects how an organization carries out its functions. For example, if the goal of an organization is to operate a successful electronic outlet, the executives will first look at the market conditions and other factors before deciding on how to operate. The products they will offer, the packaging and service delivery will all come from the strategy which sets out how the organization performs and is designed to perform. To achieve maximum success, the organization will have to differentiate themselves from the rest and align its chains or departments accordingly, and on the basis of such laid out strategy, the design is developed. 

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The fundamental aspect here is that the environment affects strategy. Generally, the point of departure for any strategic organizational design is the laid down goals and in each case, the design process begins by asking what the goals (strategy) of an organization are (Burton et al, 2003). There are some key events at play when choosing a strategy, for instance, the size of the organization. Size is of importance as large-scale firms and small-scale firms have different strategies. Large companies, for instance, those that employ over 3,000 people have complex work specialization policies than do small companies (Burton et al, 2003). As the firm grows and diversifies, the more the need and urge to set strategies. In addition to this, technology has a role to play as it affects the size of output, therefore, strategies are put in place to choose the best form of technology. 

The competing values model relate to effectiveness in that it contains four models in it which results in more efficiency in an organization. For instance, it contains the human relations model which puts a lot of emphasis on cohesion, flexibility as well as human development. There is also a rational goal model which emphasizes on the setting of goals and execution. All these, lead to improved efficiency in the long run (Burton et al, 2003). 


Only the organizations with laid down goals and strategies succeed in a competitive market. Strategies help an organization to know where they are heading and how to get there. It eventually influences the design and how the organization will be laid out as each department and branch will have to work in harmony to achieve the desired target. Strategy is therefore important and cannot be overlooked if success is the driving agenda behind any corporation. 


Burton, R., Obel, B., Hunter, S., Søndergaard, M., & Døjbak, D. (2003). Strategic organizational diagnosis and design (1st ed.). Boston, Mass.: Kluwer Academic Publishers. 

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