Effects Of Organizational Structure On Strategy Implementation

Matching structure to strategy requires making strategy –critical activities and organizational units the main building blocks in organization structure. The study sought to determine the effect of organizational structure on strategy implementation in manufacturing firms in Kenya. Location of the study was Nakuru Municipality and the study population included manufacturing firms with large plants in the Municipality which has got 30 large manufacturing firms, although some of them have ceased operations. The sample was 15 firms which have been in existence for over 10 years since inception. Survey design and questionnaires were used for data collection. Descriptive statistics was used for data analysis with the aid of statistical package for social sciences (SPSS12.01). Correlations and multiple regressions were used to test the study hypotheses. The findings of study showed that coordination and centralization have no significant effect on strategy implementation while division of tasks and formalization showed significant effect on strategy implementation in manufacturing firms.