The relationship between management philosophy, strategy, and forms of organization.
Discuss the relationship between management philosophy, strategy, and forms of organization. If you were the owner/manager of 10 convenience stores in the same city, what type of structure would you use? If you were the owner/manager of 10 Certified Public Accountant (CPA) offices in various cities, what type of strategy and structure would you use?
Sample Answer
The relationship between management philosophy, strategy, and forms of organization can be summarized as follows:
- Management philosophy is the set of beliefs and values that guide how an organization is managed.
- Strategy is the plan of action that an organization uses to achieve its goals.
- Forms of organization are the different ways that an organization can be structured.
The relationship between these three concepts is that management philosophy influences the choice of strategy, which in turn influences the choice of form of organization.
For example, a management philosophy that emphasizes employee empowerment would likely lead to a strategy ofdecentralization, which would in turn lead to a form of organization that is more decentralized, such as a matrix organization.