BUS FPX 4013 Assessment 2 Strategy Structure Fit

Student Name

Capella University

BUS-FPX4013 Organizational Structure, Learning, and Performance

Prof. Name

Date

Introduction

This assessment examines three articles concerning the strategy-structure fit of organizations. Each article offers a unique perspective on how strategy and structure interact within an organizational context, with real-world examples provided for greater comprehension.

Article Summary and Selection Explanation

Two articles were chosen based on familiarity with their respective industries: healthcare and franchised organizations. The third article, focusing on the hotel industry, was selected despite lacking prior knowledge in that field.

The first article, from the Journal of Health Care Compliance, titled “One Size Does Not Fit All When It Comes to Corporate Compliance and Internal Audit Organizational Reporting Structure,” explores the relationship between strategy-structure fit and reporting practices within organizations. It discusses the potential merger of internal audit and compliance reporting structures, highlighting the need for alignment between strategy and structure to facilitate such changes (Nueske, 2007).

The second article, from the Strategic Management Journal, titled “The Strategy/Governance Structure Fit Relationship: Theory and Evidence in Franchising Agreements,” delves into how different structures within franchising agreements align with corresponding strategies to enhance organizational performance. It emphasizes the importance of coordinating structure with strategy to optimize organizational function (Yin & Zajac, 2004).

The third article, from the International Journal of Contemporary Hospitality Management, titled “The Effect of Competitive Strategies and Organizational Structure on Hotel Performance,” explores how competitive strategies and organizational structure influence hotel performance. It investigates whether a harmonious relationship between strategy and structure contributes to improved performance outcomes (Tavitiyaman, Zhang, & Qu, 2012).

Relation Between Strategy and Structure

An organization’s strategy serves as its blueprint for operation, dictating methods, resource utilization, and interactions within the workforce. Conversely, the organizational structure provides the framework for how the organization operates, encompassing leadership, hierarchy, and task completion. Alignment between strategy and structure ensures organizational success and facilitates adaptability to changing circumstances.

The articles reviewed underscore the importance of aligning strategy with structure to enhance organizational effectiveness. Each organization, with its unique structure type (mechanistic or organic), requires a tailored strategy to function optimally.

Example: Real-World Organization with a Strong Strategy-Structure Alignment

Publix Supermarket Chain exemplifies strong strategy-structure alignment. The organization, known for its employee ownership model, regularly evaluates and promotes employees from within, fostering a cohesive workforce. Additionally, its strategy of granting stock ownership to employees incentivizes retention and ensures customer needs are met.

Conclusion

Effective organizational performance hinges on the alignment between strategy and structure. A symbiotic relationship between these elements enables organizations to navigate change seamlessly and remain competitive in the global landscape.

References

Experience To Lead. (2017, December 7). Three Companies That Rock at Organizational Alignment. Retrieved from ExperiencetoLead.com: https://www.experiencetolead.com/three-companies-rock-organizational-alignment/

BUS FPX 4013 Assessment 2 Strategy Structure Fit

Nueske, K. (2007, May/June). One Size Does Not Fit All When It Comes to Corporate Compliance and Internal Audit Organizational Reporting Structure. Journal of Health Care Compliance, 9(3), 27-30. Retrieved from https://www-proquest-com.library.capella.edu/docview/227934054?OpenUrlRefId=info:xri/sid:summon&accountid=27965

Tavitiyaman, P., Zhang, H. Q., & Qu, H. (2012). The effect of competitive strategies and organizational structure on hotel performance. International Journal of Contemporary Hospitality Management, 24(1), 140-159. doi:10.1108/09596111211197845

Yin, X., & Zajac, E. J. (2004, April). THE STRATEGY/GOVERNANCE STRUCTURE FIT RELATIONSHIP: THEORY AND EVIDENCE IN FRANCHISING ARRANGEMENTS. Strategic Management Journal, 25(4), 365+. Retrieved from https://www-proquestcom.library.capella.edu/docview/225001979?pq-origsite=summo

BUS FPX 4013 Assessment 2 Strategy Structure Fit