An Organisation's Strategy And Structure Are Important Facets Of An Organization Case Study

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Discussion Question 11.1
An organization’s strategy and structure are important facets of an organization’s performance. Both strategy and structure must be aligned to allow an organization to foster and maintain a competitive advantage. A firm’s strategy and structure have an interdependent relationship and both the strategy and structure of a firm impact the firm’s performance (Rothaermel, 2017). When a firm’s strategy and structure are not properly aligned the firm’s performance is degraded. Inefficiency is the result when structure fails to follow strategy (Hall & Saias, 1980). Organizations which align strategy and structure appropriately have a distinct competitive advantage when compared to organizations which fail to align their
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As a government organization, the organization is highly beaureaucratic and is organized in a functional structure focused on controlling costs. The organization had a strong socialization process of embedding culture. According to Chatman and Cha (2003), “Strong cultures are based on two characteristics, high levels of agreement among employees about what’s valued and high levels of intensity about these values” (p. 23). To embed the culture desired, the organization sent employees to an intense six week indoctrination course which educated employees about the history of the organization and the organizatoin’s corporate values.
Values define what is considered important (Rothaermel, 2017). The organization valued productivity and honesty, as well as a corporate climate which emphasized a work-life balance. The values of the organization were expressed in the norms of employees through their specific attitudes and behaviors (Rothaermel, 2017). Employees were expected to be professional in the workplace at all times. Artifacts include elements such as the design and layout of physical space (Rothaermel, 2017). Employees in the organization worked in office spaces and
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Checks and balances need to be in place to address the principal-agent problem and protect both management teams and stakeholders. Top management teams must have governance mechanisms, which align the incentives of the principal with those of the agents (Roathaermel, 2017). Without governance mechanisms, opportunisitic and immoral agents will take advantage of the principal, to include all stakeholders. Governance mechanisms can include a board of directors, executive compensation tied to performance, external auditors, government regulators, and independent industry analysts (Roathaermel,

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