DSpace at Khazar University

and bottom-line accountability of each business unit.
Before we leave this exploration of strategy-structure relationships we need to
note that structure also has a strong role in constraining strategy.
We conclude with the following set of practical implications of the arguments
contained in this chapter:
Structure is important, and it deserves serious consideration. Management teams
should be encouraged to challenge the existing structure, and explore different
ways of organizing.
The structure of the organization sets out how the overall task facing the firm has
been broken out into separate, specialized jobs. Looked at another way, the
structure sets out responsibilities and accountabilities. These should be driven by
the strategy of the firm. So if the strategy requires a focus on cost reduction, or
more rapid new product introductions, or improved coordination with key
suppliers, then someone should be responsible for these things. By allocating a
clear responsibility to an individual, that person can be given the resources and
authority to pursue that priority, and he or she can be held accountable for
progress.
Specialization allows people to become expert at one part of the task. To deliver
value to customers, however, these separated activities must be coordinated
together. So where you encourage specialization you must think clearly about how
all these parts are to be linked back together. The simplest form of coordination is
to encourage people to meet together. This can be facilitated by locating people in
the same space, or by encouraging communication via electronic means (e.g.
phones, E-mail, video conferencing).
Structural changes tend to be avoided, but delay in realigning the structure merely
builds up stresses that manifest themselves in poor performance. We suspect that
many senior managers lack the confidence to tackle a major structural change, for
fear of disrupting the basic routines of the organization.
All structural solutions, whether they are straightforward functional
organization, a matrix, or a divisional zed form, are a compromise. Functional
structures are excellent at fostering expertise, but they create problems of
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