ABSTRACT

The man who, back in the early 1960s, first linked structure to strategy was Alfred Chandler. When in the middle of the first decade of the twenty-first century banking and financial services became a battleground, structures unfit for that environment crumbled taking the institutions down to the abyss. One of the flat organization’s great advantages is rapid adaptation to market changes. Apart from the greater flexibility and lower costs that it provides, a greater span has important aftermath in making the organization more lean as well as better able to respond to changing situations that require repositioning against market forces. Plenty of companies have encountered organizational problems associated with obsolete structure. Human resources policies and issues relating to organization and structure correlate. Speaking in straight business terms, successful downsizing requires selectivity and an overall strategic plan that looks at the work and structure of the organization.