![]() Poorly conceived reorganizations may create significant problems, including the following: Rapid reorganization of business units, divisions or functions can lead to ineffective, misaligned organizational structures that do not support the business. Problems created by a misaligned organizational structure Organizational realignment involves closing the structural gaps impeding organizational performance. To ensure long-term viability, an organization must adjust its structure to fit new economic realities without diminishing core capabilities and competitive differentiation. See Inside Day 1: How Amazon Uses Agile Team Structures and Adaptive Practices to Innovate on Behalf of Customers.Ī hallmark of a well-aligned organization is its ability to adapt and realign as needed. As companies continue to evolve and increase their global presence, future organizations may embody a fluid, free-forming organization, member ownership and an entrepreneurial approach among all members. Today, organizational structures are changing swiftly-from virtual organizations to other flexible structures. In the 20th century, General Motors pioneered a revolutionary organizational design in which each major division made its own cars. Frederick Taylor's scientific management theory optimized the way tasks were performed, so workers performed only one task in the most efficient way. ![]() In the Industrial Revolution, individuals were organized to add parts to the manufacture of the product moving down the assembly line. ![]() Organizational structures have evolved since the 1800s. Less traditional structures are more loosely woven and flexible, with the ability to respond quickly to changing business environments. Traditional organizational structures tend to be more formalized-with employees grouped by function (such as finance or operations), region or product line. It allows groups to work together within their individual functions to manage tasks. Organizational structure is the method by which work flows through an organization. Communications, technology, metrics, global and legal issues.The impact of an organization's stage of development on its structure.Types of organizational structures and the possible benefits and limitations of each.Key elements of organizational structure.The case for aligning organizational structure with the enterprise's business strategy.This article addresses the following topics related to organizational structure: The Impact of Growth Stages on Organizational Structure Key Elements of Organizational Structures
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