Organizational Design Decisions (cont. Contingency Factors Strategy and Structure-structure should facilitate the achievement of goals strategy and structure should be closely linked °strategy focuses on: -innovtion-need the flexibility and free flow of information of the organic structure -cost minimization seek efficiency,stability,and tight controls of mechanistic structure -imtiion-use structural characteristics of both mechanistic and organic structures ©Prentice Hall,.2002 10-21 Organizational Design Decisions (cont.) Contingency Factors – Strategy and Structure - structure should facilitate the achievement of goals • strategy and structure should be closely linked • strategy focuses on: – innovation - need the flexibility and free flow of information of the organic structure – cost minimization - seek efficiency, stability, and tight controls of mechanistic structure – imitation - use structural characteristics of both mechanistic and organic structures © Prentice Hall, 2002 10-21