BUS FPX 4013 Assessment 2 Strategy Structure Fit

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Capella University

BUS-FPX4013 Organizational Structure, Learning, and Performance

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Introduction

This assessment evaluates three articles that explore the concept of strategy-structure fit within organizations. Each article provides unique perspectives on the interplay between an organization’s strategy and structure, supported by real-world examples to enhance understanding. The strategy-structure fit emphasizes how aligning operational methods with organizational frameworks can drive effectiveness and adaptability.

Article Summary and Selection Explanation

The selection of articles was based on relevance to familiar industries—healthcare and franchising—while also including a less familiar domain, the hotel industry, to gain broader insights.

Article 1: Healthcare Industry

The 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 integration of compliance and audit reporting structures. It underscores the importance of aligning strategy with structure to implement organizational changes effectively (Nueske, 2007).

Article 2: Franchised Organizations

The second article, published in the Strategic Management Journal, is titled “The Strategy/Governance Structure Fit Relationship: Theory and Evidence in Franchising Agreements”. It examines how various franchising governance structures align with specific strategies to improve performance. The study highlights that achieving strategic alignment ensures efficiency and strengthens operational outcomes (Yin & Zajac, 2004).

Article 3: Hotel Industry

The third article, from the International Journal of Contemporary Hospitality Management, titled “The Effect of Competitive Strategies and Organizational Structure on Hotel Performance”, investigates how structural alignment with competitive strategies enhances performance in the hotel sector. It emphasizes the synergy between strategy and structure as a determinant of success (Tavitiyaman, Zhang, & Qu, 2012).

Relation Between Strategy and Structure

An organization’s strategy defines its operational goals, resource allocation, and workforce management, while its structure provides the framework for executing tasks, leadership, and decision-making processes. Achieving alignment between these two elements is crucial for organizational success.

The reviewed articles collectively highlight the necessity of tailoring strategies to align with unique organizational structures—whether mechanistic or organic—to optimize performance. For instance, mechanistic structures are more rigid and suited for stable environments, while organic structures thrive in dynamic settings.

Real-World Example: Publix Supermarket Chain

Publix Supermarket Chain demonstrates robust strategy-structure alignment. Its employee ownership model fosters a unified workforce by promoting talent from within and granting stock ownership as an incentive for retention. This approach ensures that employee satisfaction translates into meeting customer needs effectively, showcasing the benefits of strategic alignment.

Conclusion

In conclusion, the alignment of strategy and structure is a cornerstone of effective organizational performance. The reviewed articles illustrate how this symbiotic relationship enables organizations to adapt to changes and remain competitive. By ensuring that strategies are compatible with structural frameworks, organizations can achieve long-term success and resilience.

References

Experience To Lead. (2017, December 7). Three Companies That Rock at Organizational Alignment. Retrieved from Experience to Lead

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 ProQuest

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. https://doi.org/10.1108/09596111211197845