Determinants of Organizational Structure
A number of factors determine how organizations are structured. These include the organization’s goals, social customs and mores, the beliefs and values of the founders or managers, environmental constraints, and available technology. As mentioned earlier, size, though an element of structure, is also a determinant because it influences all the other elements.
Organizational goals clearly influence the way an organization is designed. The high value placed on productivity and quality as well as shareholder value had a major influence on the redesign of Westinghouse as a more diversified and decentralized firm. Indeed, goals are the prime determinants of structure. If one is in the business of producing hamburgers, the goal of delivering a gourmet product at a moderate price leads to different structuring arrangements than does the goal of delivering a reliable product quickly at a low price.
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Eric Raymond
Tags: Organizational Structure
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