STRATEGIC BUSINESS MANAGEMENT & PLANNING

STRATEGIC BUSINESS MANAGEMENT & PLANNING

Strategic Business Management & Planning

1. To what extent do you agree that organisational structure is a critical determinant of strategic success? Support your answer with business examples and academic ideologies.

Organizational design reflects the systems view, which considers that structure consists of both hard and soft components, and is the superior composition of relationship between organizational elements. Structural dimensions are traditionally examined along three dimensions of formal relationship: hierarchical, functional, and the dimension of inclusion and centrality, underlining two prime types of structure: mechanistic and organic organizations. However, the knowledge economy makes new demands on organizational structuring based on processes. (Coller, 2008, 19)

Informal structure better depicts actual organizational activities and reflects dynamic interaction that is critical to knowledge creation. This conceptual paper incorporates informal structure as an important dimension and further elaborates organizational structuring at a higher level: trust-based relationship, externally-oriented interactive relationship, and emotionally-inclusive relationship; and their importance in the attainment of organizational success in the knowledge economy.

Organizational structure is a primary driver of change since it provides the skeletal structure for all organizational decisions and processes. Authors have categorized the shift of organizational structure in various ways. For instance, (Coller, 2008, 19) classify two types of organizations: mechanistic and organic structure. At a broader level, numerous authors have postulated a shift along a perspective that views organizations as machines, organisms and processes (Coller, 2008, 19), etc.

Therefore, getting the most out of your existing staff, including how they are structured, becomes increasingly important. The bottom line is that organizational structure truly impacts employee behavior, and that behavior, in turn, affects performance. So when considering online success, nonprofit managers should be more aware of and thoughtful about:

* Organizing their resources carefully

* Planning the priorities for these resources

* Assigning ownership and accountability

* Acquiring or developing the interactive skills required for online success

How Organizational Structure Helps Define Online Success

Nonprofits organize their online programs into one of three structural models:

* Centralized: All employees working on online programs are consolidated into a single department and usually sit in one office location

* Decentralized: All employees working on online programs are spread across different departments (marketing, IT, development, program services, and advocacy) and likely sit in different office locations

* Hybrid: Employees working on online programs are mostly consolidated into a single department, though some employees don't work within that department (some may even be contract employees)

Those with a centralized model said they are fairly effective at planning, internal communication, decision-making and accountability, while those with a hybrid and decentralized models said they feel less effective in all areas. Similarly, most centralized organizations felt they are very effective at setting goals, holding staff accountable, (Edwards, 2008) initiatives such as increasing online giving penetration and sticking to a proactive marketing plan, while hybrid organizations said they are somewhat effective and decentralized groups said they are less effective at managing these online-related tasks. (Sisson, 2005, 12)

As interactive marketers, it's often more natural and stimulating ...