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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 minordoi:10.1142/s0219877006000788 fatcat:477s6nncwrc43kuru3cpdpwta4