How is organizational structure connected to firm performance?
The main focus of the article “Organizational structure and firm performance: An intertemporal performance” is about an organizations of economics activity within companies can take a number of different forms, since firms must choose an appropriate organizational structure within which to administer their activities. This article looks at both capital structure and organizational structures; which can inhibit or promote organization performance, depending how effectively the management relationships and workflow influence productivity. The main emphasis on this article in relations to organizational performance is leadership role in managers to have the ability to improve the organization performance. Also, this article aims at the organizational structure plays often a fundamental role in the successfulness of firms, and that’s because many factors influence the decision to adopt an organizational structure more than another in order to obtain profit. Research indicates that without policies and procedures enforced throughout the organization, performance management strategies can fail to achieve their desired goal.
In conclusion, an organizational leadership structure is a fundamental part of an organization success and the leadership structure clarifies where every individual, group and department fit into a company’s overall operations. For this reason, only with an appropriate structure, the organization can achieve its objectives and be strategically effective.
Ingham, H. (1992). Organizational structure and firm performance: An intertemporal performance. Journal of Economic Studies, 19(5), 19. Retrieved from: https://search-proquest-com/docview/220671796?accountid