DOES ORGANIZATION STRUCTURE MATTER? ON THE RELATIONSHIP BETWEEN THE STRUCTURE, FUNCTIONING AND EFFECTIVENESS

JON AARUM ANDERSEN, PATRIK JONSSON
2006 International Journal of Innovation and Technology Management (IJITM)  
DOES ORGANIZATION STRUCTURE MATTER? On the relationship between the structure, functioning and effectiveness Abstract: Managers often see new organizational designs as the solution to many problems. This paper explores the relationship between organization structure (design), functioning of organizations, and effectiveness. A study of 320 companies showed that the structural variable decentralization marginally affected the way in which organizations function. Functional variables had a minor
more » ... pact on profitability. No direct relationship between structure and effectiveness was found. When functioning is conceptualized as a mediating factor no direct causality between structure and effectiveness is implied, but a relationship between structure, function and effectiveness. To improve effectiveness, reorganizing is probably not the first option to consider.
doi:10.1142/s0219877006000788 fatcat:477s6nncwrc43kuru3cpdpwta4