Organizational Structure and Strategic Leadership

Organizational structure and strategic leadership

Importance of organizational structure and strategic leadership in implementation of business-level, corporate-level, and international strategies

Proper organizational structure and strategic leadership are vital since they help companies establish flexibility, innovation and creativity in the global economy. These two factors are vital since they ensure the firm is in a strategic position to exploit their primary competencies while venturing into new market opportunities. According to Mihalache et al. (2014) organizational structure and strategic leadership ensures firms maintain a specific level of stability in their structures to ensure all operations are performed with high level of efficiency.

Types of organizational structures

Functional – Functional structure is developed in a manner that every part of the organization is categorized based on its purpose. In such organizations, there may be different department’s for instance sales department, marketing department, production department among others.

Divisional – Divisional structure is common in large organizations that carries its operations in a wide geographic area or simply entails different smaller businesses within the mother company in order to cater for different products as well as markets. 

Matrix – This kind of organization structure is a combination of both functional and divisional organizational structures. These structures are known to create a struggle for power since majority of its departments tend to have dual management.

Relationship between Organizational structure and Organizational Control

While organizational structure depicts the structure and flow of functions, organization control entails the processes that have been out in place to guarantee that all organization plans are executed in the manner that was intended. As such, organizational controls play a very important role when it comes to measuring and evaluating the effect and impact of particular changes within the organizational structure.  The absence of either of the two will affect the efficiency of the organization. According to Harper (2015), the organizational controls rely on the structure to lay out strategies. On the other hand, the organizational structure relies on the controls to measure its efficiency. 

Attributes of an effective strategic leader

The process of making a business grow amidst constant changes calls for persistent and constant strategic planning, and in return, constant strategic planning calls for highly effective and efficient leader. An effective strategic leader must be able to portray unique traits that will enable the business achieve its short-term and long-term goals. Such attributes include courage, discipline, endurance and inspiring among others. The presence of such a leader ensures that they are able to guide, monitor and facilitate the implementation of strategies. 

 

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