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Strategy and Structure

Burns and Stalker proposed a contingent relationship between formal structure and organizational performance, arguing that organizations with organic structures, or loosely coupled networks of workers, are better adapted to dynamic environments. Organizations with Weberian mechanistic structure (bureaucracy), where work is “distributed among specialist roles within a clearly defined hierarchy”, were viewed as more suitable for static environments.

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​Strategy and structure are two independent elements in business that are somewhat co-dependent. The strategy – which is created often – determines the structural elements associated with the business. Some businesses also use the inverse and shape strategy, which is based on structure. Combining these forces effectively leads to a cohesive business model that functions to achieve common goals.

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