Effect of Firm Organizational Structure and Management Style on Business Success: An evidence of Nike Inc.
Effect of Firm Organizational Structure and Management Style on Business Success: An evidence of Nike Inc.

Summary/Abstract: Organizational structure is the hierarchical arrangement of levels of authority, lines of communication, and responsibilities of an organization. Classifications of organizations often indicates formal, informal, or hybrid organizational structure that is dependent on the degree of centralization, decentralization, or the combination of the two within an organization. The most commonly employed organizational structures in modern companies are often utilized out of a need for practical management and include: functional organizational structure, product based organizational structure, regional or geographical based organizational structure, market or customer oriented organizational structure, and matrix organizational structure. The advantages of a matrix organizational structure, as utilized by Nike Inc. are addressed within this paper. Although is it commonly speculated that there is one right organizational structure for each business, it is more likely that hybrids of a variety of organizational structures are more adept at meeting the needs of modern companies. Additionally, the extent to which organizational structures function and work within the business is largely determined by the management style, manager’s and employee’s aptitude in their positions, and the degree to which constant learning is espoused and practiced.

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