Organizational types and types of strategies
There are many factors other than organizational structure that have a significant bearing upon the performance of an organization. However, organizational structure is a particularly important aspect as, if properly designed, it allows the other aspects e.g. strategic work, to function properly. For example, Alfred D Chandler (in Foss, 1997) argues that firm structure follows strategy. That is not to say that, if an organization is inappropriately designed, it will not perform adequately (Walker, 1996).
All organized human activity give rise to two basic and differing requirements: the distribution of labour into various tasks to be performed, and the coordination of these tasks to complete the activity. The structure of an organization can therefore