Identify and discuss the three building blocks of organizational structure.

Question

What will be an ideal response?

Answer 1

Organizational structure assigns employees to specific value creation tasks and roles and specifies how these tasks and roles should be linked together in a way that increases efficiency, quality, innovation, and responsiveness to customers' distinctive competencies that build competitive advantage.?The first building block of structure is grouping tasks, functions, and divisions. As companies grow, they may need to revisit structure so that these groupings are implemented to help create distinctive competencies.?The second building block is allocating authority and responsibility. As companies address authority and responsibility, the day-to-day structure takes shape. Decisions must address the hierarchy of authority, span of control, tall or flat structure, chain of command, and degree of centralization or decentralization.?The final building block of structure is integration and integrating mechanisms. The greater the complexity of an organization's structure, the greater the need for coordination among the people, functions, and divisions to make the organizational structure work efficiently. Tools of integration include direct contact, liaison roles, and teams.