DSpace at Khazar University

processes is either specialization (e.g. training) or coordination (e.g. quality control,
planning, and delegation, target-setting).
Certain types of structure make extensive use of particular processes.
For example, operations planning and control, training, quality assurance and
disciplinary processes are features of the large mass production firm, the "machine
organization". In contrast, informal communication networks, incentive systems and
decentralized decision making might be typically found in a software development
company, the "innovative organization". Therefore, it is important to understand the role
that organizational processes are playing in bringing about specialization or
coordination within a particular organizational configuration, and not to view them as
separate dimensions that can be changed or manipulated independently. Hence
programmers that concentrate on changing quality systems or improving
communications need to be tackled with a full appreciation of the role these processes
play in the wider organization. Other aspects of formal and informal organizational
processes are explored in more depth in the next chapter.
2-5-3. Linking strategy, structure and process
We shall now look at the links between strategy and structure. As most business
units adopt some form of functional structure it is worth looking at the strategy-structure
relationship within a functional structure first. We will then explore other strategystructure
relationships.
2-5-4. The functional structure
Most firms solve the first problem of organization, how we should specialize, by
adopting a functional structure, which groups people according to the type of activity
they are engaged in. An engineering organization might have the following functions:
production, engineering, sales, accounts, administration, personnel,
warehouse/transport.
As a firm grows, the number of functional specializations tends to increase, and
they may emerge in a typical order. For example, the very small one- or two-person
firm concentrates initially on some form of production (e.g. making novelty candles).
Growth in orders means that they have to think about how to manage the production
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