Organizational Structure institutionalizes: Organizational structure provides the basic template for the continuance of an organization’s culture, norms, values, philosophies, and informal activities.
According to the article ‘What is the Right Organization?
A focused strategy is designed to help an organization target a specific niche within an industry, unlike both the cost leadership and differentiation strategies, which are designed to target industry-wide markets.
An organization that chooses a focused strategy may utilize any of a variety of organization designs, ranging from functional to product to matrix, to satisfy their customers’ preferences (Sims 2002).
In a differentiation strategy, an organization seeks to be unique in its industry along dimensions that are widely valued or preferred by buyers.
An organization that chooses a differentiation strategy typically uses a product organization design whereby each product has its own manufacturing, marketing, and research and development (R&D) departments.As organizations increase in size, the rules and procedures become formal.Large organization have more management levels and more structured work activities than small organizations and used decentralized form.These factors are the organization’s strategy, its external environment, its technical process, and its size.Each factor alone can affect design decisions, or they can collectively constrain or drive design choices. Strategy Many of top management’s strategic choices affect organization design decisions.These organizations will have several layers of management through which directions and communications must pass.There are four factors that managers assess before designing an organization.An organization’s strategy describes the organization’s long-term goals and the way it plans to reach those goals.Strategies also specifies how managers should allocate resources to reach the long-term goals of their organization (Sims 2002).There are two general theories of organizational design: the universalistic approach (the standard hierarchical design) and the contingency approach, which has no identified form.The universalistic approach is based on the premise that there is one "best" way to structure an organization regardless of the situation and is based on a set of principles that guide the design process.