Organizational Structures and Corporate Cultures

This text discusses the internal factors that affect how organizational structures are designed. These structures are important to managers because they establish lines of formal authority and configure other reporting arrangements. One thing to remember is that the industry type influences the chosen structure. The text also considers the system approach and examines how the internal dimensions of the firm, such as leadership and culture, change in response to the external business environment. Note that the organizational alignment is not set in stone permanently. It will change in response to the external business environment from time to time.

The Internal Organization and External Environments

Glossary

Domain

The purpose of the organization from which its strategies, organizational capabilities, resources, and management systems are mobilized to support the enterprise's purpose.

McKinsey 7-S model

A popular depiction of internal organizational dimensions.