Theemployees in an organization are defined by their responsibilities,who they report to, or who reports to them. These definitions becomeattached to the available positions. The relationships between thesepositions form an organizational structure. Organizational structure,therefore, refers to the arrangement of people and jobs in anorganization to promote performance and meeting of the organizationalgoals (Lim, Griffiths, & Sambrook, 2010). It encompasses a firm’sformal role configuration, procedures, governance, the flow ofauthority, and the decision-making process. This paper explains theconcept of organizational structure and strategic leadership.
Organizationalstructures are highly dependent on the type of work done, the numberof employees, the revenue collected, and the geographic dispersion ofthe facilities (Starr, n.d). Therefore, it is important todistinguish between different organizational structures used toimplement business-level, corporate-level and internationalstrategies. The organization’s structure and strategies go hand inhand. During the development of strategies, a firm should carefullythink whether its structure can support the strategies. All theemployees are important in supporting the new strategy and ensuringit succeeds.
Forexample, in business-level structure, the work group is subtle,making face to face communication frequent than in corporate level.Therefore, a simple organizational structure where the owner makesall the important decision and directly supervises all the activitiesapplies. However, a functional organizational structure that has aChief Executive Officer (CEO) and functional line managers in thecentral departments such as production, and the corporate staff issuitable for corporate level strategies (Starr, n.d). The board makesthe decisions while the managers implement them using the corporatestaff. A multidivisional form has the various profit generatingdivisions and a top corporate officer who delegates responsibility ofthe divisional managers is applicable in international businessstrategies.
Organizationalstructure and control relate closely in that they both establish away communication and delegation of tasks in a firm. Theorganizational structure assists the managers to analyze data of thefunctioning of the employees and the business in general and thenmake appropriate corrective administrative decisions (Carpenter,Bauer, & Erdogan, 2010). The administrative decisions signify thepositional authority of the manager that is reflective of his controlas determined by the organizational structure. Removal or compromiseof one reduces the company’s influence on its subunits and membersin meeting the organizational goals. Therefore, the performance ofemployees decreases, reducing the overall competitiveness of theenterprise.
Aneffective strategic leader is visionary (Lim, Griffiths, &Sambrook, 2010). He/she communicates his vision for the organizationto the employees to motivate them. A strategic leader, therefore,brings a long-term vision to the strategic management process. He/shehelps in shaping the vision, mission, and philosophy of theorganization which influences the development of successfulstrategies. He also ensures that the formulated strategies areimplemented and evaluated accordingly. He also manages human resourceand empowers the employees to reach the vision (Lim, Griffiths, &Sambrook, 2010). A strategic leader has a wider perspective andbalances the firm’s short-term needs while maintaining itslong-term survivability. He/she is also flexible and deals withchange swiftly.
Inconclusion, organizational structure encompasses all employees,positions, procedures, and processes of an organization anddetermines how the organization works. Organizational structuresupports the strategy and control. Therefore, for the organization toachieve its vision, the structure must be aligned with the strategiesand control. Besides, the organization should have an effectivestrategic leader who anticipates, envisions, and empowers theemployees to work towards the mission and vision. The strategicleader also ensures that he utilizes the existing structure toimplement his strategies and guide the firm accordingly.
Carpenter,M., Bauer, T. & Erdogan, B. (2010). Principles of management.Irvington, N.Y: Flat world Knowledge.
Lim,M., Griffiths G., & Sambrook, S. (2010). Organizationalstructure. Mind Map Route.
Starr,E. (n. d). & Control. Albany.edu.Retrieved 12 November 2015, fromhttp://www.albany.edu/faculty/es8949/bmgt481/lecture7.html