Organisational structure acts as one of the integral parts in case of operating the organisation in an efficient manner. The structure of any organisaition depicts the hierarchy present within the organisation. Therefore the structure of an organisation helps in determining the way power, responsibilities & the job roles have to be assigned among different layers of the organisation. It also ascertains the way information passes through one level of management to others. To operate an organisaition smoothly, it is imperative to adopt various strategies. It is essential to form strategies by the management of the organisaition. Strategies are generally set on the basis of the behaviour of people within the organisation. Proper utilisation of skills is imperative from the point of view of the organisation to set their organisational strategies. Organisational strategies generally play a vital role in determining the structure of the organisation (Jones, 2010). Setting various strategies at the initial stage, help in designing a good organisational structure. In this case, strategies act as the pillar of the organisational structure. This is not applicable for every organisation. In case of few organisaition the strategies are set on the basis of structure of the organisation. Few structures of organisation are not suitable for making correct strategies regarding the business operation. If the organisation consists of large numbers of layers in the management level, then it will not be able to make appropriate strategies. If layers between operations & management is more, it hampers the decision making process. The horizontal structure of the organisation is effective in operating the organisation in a smooth manner. Another element of the organisational structure is the bureaucracy & in general bureaucracy acts as the red tapism in case of an organisation (Zheng et al., 2010). Bureaucracy elongates the decision making process & this acts as a hindrance in the business operation. Only making strategies is not enough for any organisation, the implementation of these strategies is inevitable with the help of designing suitable structure.
In case of Woolworth food group organisational structure plays an important role. In this organisation the organisational structure is horizontal or flat in nature & this facilitates the decision making process of the company. The organisational structure also helps in making proper strategies for the effective management of the organisation. In case of this organisation the role of bureaucracy is every low. This also makes the decision making process faster. Hence, in this organisation the organisational structure determines the strategies of the organisation (Silva et al., 2010). Different strategies are made by the management taking into consideration decisions of employees. Involving employees of the organisation in the decision making process imparts a feeling within employees, that they are an integral part of the organisation. This acts as a motivational tool to improve the productivity of employees.
[Source: Woolworths, 2015]
Therefore, strategies & structure of an organisation are interrelated to each other. In few organisations, strategies help in designing structure & in others the structure of the organisation facilitates the organisation in making strategies (Daft, 2012). In case of Woolworth Food Group the short & long term strategies are made on the basis of the flat organisational structure.
Daft, R. (2012). Organization theory and design. Nelson Education.
Jones, G. R. (2010). Organizational theory, design, and change.
Silva, N. D., Hutcheson, J., & Wahl, G. D. (2010). Organizational strategy and employee outcomes: A person–organization fit perspective. The Journal of psychology, 144(2), 145-161.
Woolworths. (2015). Woolworths Food Group. [online] Available at: https://www.wowlink.com.au/cmgt/wcm/connect/9ef48c0049157799a0e6f5f933fb4d80/Food_Group_Org_Chart_130715.pdf?MOD=AJPERES [Accessed 1 May 2017].
Zheng, W., Yang, B., & McLean, G. N. (2010). Linking organizational culture, structure, strategy, and organizational effectiveness: Mediating role of knowledge management. Journal of Business research, 63(7), 763-771.
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