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We all know that some organizations are more productive than others. We do not necessarily know why. The way in which the organization is structured is the basic determinant – it should offer a potential for high productivity which is realized in the way that work systems,processes and procedures are organized and the way in which the workforce is empowered and motivated. In this article I am assuming that an organization has undertaken a commitment to productivity improvement in its widest sense. This commitment (which unfortunately is all too rare), from the senior management team, has to be driven down into the organization through the organization structure and then implemented at all levels of the structure. So what kind of structure is best suited to delivering such productivity improvements? Before we examine the implications of specific structures we need to examine the concepts behind organizational structure and the reasons why changes may be necessary.

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