The design of an organizational structure depends on such factors as:
i. The departmentation method chosen should yield the advantages of specialization and hence increased productivity
ii. The departmentation method should simplify the executive’s task of control.
iii. The departmentation method should take into account the local conditions of the organization
iv. Economy: Unnecessary departments should be avoided that may result in duplication of roles
v. Activities securing greater management attention should be given recognition by way of departmentation
vi. The degree of international orientation and commitment of the organization
vii. The technologies available to the organization and which can be used to simplify certain tasks
viii. The internal and external environmental factors in the situation of the company.