Organizational Structure Influences the Strategies Developed

Organizational Structure Influences the Strategies Developed
According to Walston (2018b), strategy formulation is crucial in any organization. The strategic action cycle indicates that different stakeholders in the organizational structure participate in strategy formulation and subsequent implementation. Organizational structure impacts the strategies developed in different dimensions. In order to theorize the influences, it is crucial to understand that organizational structure is an approach via which organizations arrange their personnel and jobs to complete specified tasks as well as attain their strategic goals. The structure incorporates a chain of command which defines reporting and authority relationships across the organization. A chain of command influences decision-making authority, communication within the health care organization, and thus strategy development. For example, structure places different organizational members at distinct levels, thus influencing their understanding of the internal and external business environment. Depending on their position within the organizational structure, each decision maker has a different ability concerning influencing strategy development decisions (Walston, 2018a). The structure of institutions influences strategy formulation and its capacity to coincide with the business environment.
The successful implementation of the functional, matrix, and multidivisional structure is anchored on different factors. The functional organizational structure classifies departments based on shared tasks, specialized services, and roles, such as marketing, finance, and accounting. Successful employment of the functional structure is anchored on the firm size. Geographically centralized small firms producing the modest product or service volumes can apply this structure to bridge feedback loops and ensure effective information sharing across the levels. Multidivisional organizational structures are categorized into smaller units or profit centers (Walston, 2018a). An organization with operations scattered across different jurisdictions will likely implement the multidivisional organizational structure. In this way, divisional autonomy facilitates the ...