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Designing an Organizational Structure to Facilitate Coordination and Effectiveness Across Business Areas and Levels.

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Steve Kofford, PhD
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Once organizational design priorities and principles have been identified, an organizational structure should be selected and tailored to meet the needs of the organization. The structure plays a large role in determining how the organization will work together to implement its strategy and achieve its goals and guides how other aspects of the organization are designed and implemented.

looks_oneSelect an organizational structure

The structure selected for an organization should match the design priorities and principles established, which are, in turn, dictated by the business strategy. An overarching structure should be selected for the organization as a whole. Individual business units and/or functions may select their own organizational structure as appropriate. However, if business units or functions use a different structure (e.g., a functional structure in an organization with a divisional structure), careful consideration should be given to ensure it is in line with the organization’s goals and business strategy. Considering the following guide is helpful for selecting an organizational structure:


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