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Difference Between Organizational Structure & Design

Factors That Affect the Relationship Between Design and Structure

There are several factors that affect the relationship between organizational design and structure:

  • Organizational size
  • Organizational life cycle
  • Strategy
  • Environment
  • Technology

Organizational size is a factor. A large organization has more employees and tends to have multiple levels of formal authority. By design, employees have less input in decision-making. There is also less social interaction between employees in a large company.

Big Waves is a smaller company with few employees. As a smaller company, they have fewer management levels and manage in a more personal way. Fewer employees mean everyone in the organization is responsible for meeting goals.