I he Evolution ot Urganizational Structures

Organizational structure is one of the elements of organizational architecture that needs to be aligned for a firm to execute its chosen strategy. Although not every firm evolves in the same way, particularly given the different strategies used by companies, there is a general pattern of growth and evolution that firms follow. Original structures reflect the owner's approach, and if the business is successful, the structure becomes more sophisticated. An international business manager will likely confront issues of organizational design as firms evolve at different rates in different countries or markets. And, of course, strategy has a major impact.

Organizational structure has three dimensions, the vertical dimension that refers to the decision$-$making responsibilities, the horizontal dimension that refers to the division into subunits, and integrating mechanisms. The decisions about horizontal differentiation are normally made on the basis of function, type of business, or geographical area. Strategy and sophistication play important roles as the organizational structure adapts to changing market needs and changing needs within the organization.

Match each organizational structure to its correct description.

$1$

Small Business

$2$

Global Matrix

Structure

$3$

International

Worldwide Area

Worldwide Product

Division

$4$ Structure

$5$ Division Structure

$6$

Domestic Structure