The relationship between business objectives and organisational structure

Need to know

What you need to know

• Business strategy and objectives are established before the structure is designed.
• Organisational structure is the vehicle for implementing strategy.
• The choice of structure is a deliberate management decision to support goals.
• A mismatch between strategy and structure leads to inefficiency and poor performance.

Explanation

The relationship between business objectives and organisational structure

1. Business strategy and objectives are established before the structure is designed.
2. Organisational structure is the vehicle for implementing strategy.
3. The choice of structure is a deliberate management decision to support goals.
4. A mismatch between strategy and structure leads to inefficiency and poor performance.