Does organization structure matter? On the relationship between structure, function and effectiveness

Journal article, 2006

relationship between organizational design (structure), functioning of organizations, and effectiveness. A study of 320 companies showed that the structural variable decentralization marginally affected the way in which organizations function. Functional variables had a minor impact on profitability. No direct relationship between structure and effectiveness was found. When functioning is conceptualized as a mediating factor no direct causality between structure and effectiveness is implied, but a relationship between structure, function and effectiveness. To improve effectiveness, reorganizing is probably not the first option to consider.