Describe three of the factors that must be considered by managers when designing an organizational structure. Explain how each factor contributes to the flexibility of the organization.
What will be an ideal response?
An organization's external environment, strategy, technology, and human resources are the factors to be considered by managers seeking to design the best structure and culture for an organization. The greater the level of uncertainty in the organization's environment, the more complex its strategy and technologies, and the more highly qualified and skilled its workforce, the more likely managers are to design a structure and a culture that are flexible, can change quickly, and allow employees to be innovative in their responses to problems or customer needs. The more stable the organization's environment, the less complex and more well understood its strategy or technology, and the less skilled its workforce, the more likely managers are to design an organizational structure that is formal and controlling and a culture whose values and norms prescribe how employees should act in particular situations.
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