There are various types of leaderships styles like: most authority and control in decision making. P Compare and contrast different organisational structure at the “parent” use a combination of strategic and financial controls. The Relationship between the Structure, Culture, and Management Styles in Tescos. What is the relationship among organizational structure, control systems, For example, if an organization's culture were informal and collegial, then a highly.
Software and Technology Companies On the other hand, most software companies and financial services companies have codes of conduct that specify addressing each other on a first name basis in addition to having common public areas and dining halls where there is no difference between the software engineers and the managers or for that matter even senior management. Of course, some multinationals have executive dining halls mainly because of the fact that external clients tend to visit for meetings and hence, the negotiations and discussions are carried out over lunch and dinner as well.
Industry Characteristics Drives Organizational Structure The reason for mentioning all these aspects of organizational culture is that each industry has different environmental characteristics and drivers of growth and hence, the organizations in them have their own sets of rules that determine the structure and design of job roles and responsibilities.
For instance, workers in manufacturing organizations just need to work as they are told and that too in a routine and repetitive manner. Further, the assembly line mode of manufacturing means that unless there is significant innovation and improvement, the basic work remains the same.
On the other hand, the technology companies have jobs where each day is different and each project and parcel of work has to be handled differently and in a new manner. This means that there is constant change and hence, the culture as well as the design of the organizational structure has to be as adaptable and flexible as possible to encourage innovation and stimulate creativity.
Geography and Type of Organizations Play a Role as well Finally, the design of the organizational structure is also determined according to the geography, type of organization, and the vision of the founders and the continuing vision of the CEOS. For instance, it is common for western multinationals to be informal and flexible whereas Asian companies are often rigid and strict and formal in their approach.
Even the technology companies in Asia often have different designs of organizational structure when compared to technology multinationals. The design of the organizational structure depends to a great extent on how the original founders want the organization to be and how well the same vision is either being carried forward or being changed by the new incumbents.
This type of culture is well defined and stable. It is quite a formal culture which emphasizes on control and authority to keep the organization running smoothly. This type of culture offers security and stability. This type of culture is similar to Hierarchy Culture in the sense that it also focuses somewhat on security and stability but it is driven results. It is a very competitive environment to work in and there is very high focus on production.
The focus of this type of organizational culture is the employees of the organization. It is a very friendly environment to work in. Loyalty is emphasized and employees are asked to express themselves more openly.
There is also a lot of importance given to teamwork. This type of culture emphasizes thinking outside the box. Employees are given a bit of latitude to experiment and to think differently.
Creativity is encouraged and appreciated.
Is There a Relationship Between Organizational Structure and Culture? |
The atmosphere is dynamic and roles are not always defined. It is quite different from the rest of the organizational cultures. Like organizational structures, it is not necessary that one type of culture will be prevalent throughout an organization.
Some companies tend to implement different cultures in different sectors. This is important to distribute tasks into different groups to ensure that no two people are working on the same project or task so that we get the most output for our input.
Because organizations cannot be run without people, this tends to create different informal structures or environments in the organization which leads to different attitudes, perceptions, behaviors and traits with lots different types of aptitudes.
So when employees are supposed to work together on a task in the constraints of a formal structure to reach a certain objective there are certain ways to speak and interact, which in effect forms an organizational culture, where it may be created knowingly or unknowingly by the employees.
Organizational culture in some way defines the organizational structure of an organization but the structure also partially defines the culture of an organization. It can also be said that the structure is a framework for the culture to be implemented, while the culture dictates how the company should be structured. So, no matter how big a company, if its culture starts to disintegrate, it is only a matter of time till the structure also follows.
Business performance in a Functional Organization structure can be severely affected by the time it takes for the flow of communication through the different levels of the hierarchy making the organization very slow to adhere to the new technology, the political situations, the economy, cultural changes or social factors and legal issues.
Relationship Between Organizational Structure, Design & Change
It generally has a narrow span of control which may cause restrictions in individual expression and power which causes job dissatisfaction and de-motivation. The level of motivation employees possess will affect their output affecting business performance. Employees might not understand the bigger scenario and the significance of their individual work. Employees may have a bad perception towards work or because everything is so clearly defined and communication is limited, this could result in an indifferent nature and attitude even greater affecting employee relations, affecting motivation, resulting in low business performance.
Relationship Between Organizational Structure, Design & Change
On the other hand a Divisional Organizational structure has greater flexibility because of low levels of management. This fast attribute to change makes it competitive, able to adjust to customers wants and needs very fast, giving it better performance. Better communication encourages individual through initiative and power to make decisions giving the feeling of self-freedom, causing highly motivated employees, which affects business in a very good way.
This is also dependent upon the individual personalities and networking within the organization. This is why employees need to be selected who will fit the organizational culture so that there will be excellent work relationships.
Matrix being the newer organizational structure, it is a bit different from the old thinking of the typical boss; it also redefines the idea of hierarchy or individuals use of organizational power to make decisions but that of expertise power of employees. The task culture is reflected in the matrix organization and there is at times no clear leader within each team. These shifts give rise to employees having a high job satisfaction because of individual participation and the group identity thus affecting business performance, simply because motivated employees work better.