Organizational Culture, Structure & Design

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Running head: ORGANIZATIONAL CULTURE, STRUCTURE & DESIGN

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Organizational Culture, Structure & Design Satish kumar Gummalla University Canada West Instructor: Liz Wiebe Business Fundamentals MBA 549, Section B March 17, 2011

Satish Kumar Gummalla (1010863)

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ORGANIZATIONAL CULTURE, STRUCTURE & DESIGN Abstract Organizational structure defines the attitude, values and core competencies of an organization. The structure in a way forms the culture for that organization which invisibly exists. The culture plays an important role for the healthy functioning of an organization since the employees correlate themselves based on the values and beliefs of that organization. The operation functions such as finance, human resources and marketing impact the structure of an organization and depicts the kind of structure the organization has adopted. The design forms the blueprint for the organizational structure. In this paper we have enlightened the organizational culture, structure and design of Sears Canada Inc.…

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The highly centralised structure of Sears Canada Inc. has been depicted and various other theories that are evident in the functioning have been described. Keywords: Organizational Culture, Organizational Structure & Design, Fayol`s principles, Traditional Organization and Departmentalization.

Satish Kumar Gummalla (1010863)

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ORGANIZATIONAL CULTURE, STRUCTURE & DESIGN ORGANIZATIONAL CULTURE, STRUCTURE & DESIGN Introduction "An ethereal world created by unwritten lines of power. Merely called Culture” (Satish, 2011) Sears Canada Inc. is a mid-market and a catalogue retailer. It started its operations as Simpsons-

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Sears Limited in 1952. The company was a joint venture between Robert Simpsons Company a Canadian store retailer and Sears, Roebuck and Co. of the United States. The purpose of this joint venture was to leverage the buying power and organization of Sears, Roebuck and Co. and take over the Simpsons catalogue operations and build new stores into the market that were not being served by Simpsons. (Sears Canada, 2011) In this paper we shall find a detailed description of organizational culture, organizational structure and design. The impact of organizational functions such as marketing, finance, human resources and operations on organizational structure is explained. The design factors which determine the best suited structure for the organizational based on geographic, functional, product based, customer based and departmentalization are also emphasized. To explain them in a more exemplary manner we have opted for Sears Canada Inc. and focused on their working principles. Organizational Culture, Structure and Design Organizational culture is an eclectic mix of attitudes, values, perceptions, aspirations and goals. One cannot define this culture in a precise way since the culture of no organization is the same. The organization culture is diverse based on the values of each organization and the specific goals that organization. The convergence of diverse cultures and ethnic groups at one place is no less than a myth. People from various walks of life and experiences come together to work towards a common specific goal. The ambience is created within and hangs out there and influences the way the work is done. It is a Satish Kumar Gummalla (1010863) Page 3 of 9

ORGANIZATIONAL CULTURE, STRUCTURE & DESIGN life style paradigm which every organization adopts over the time since this is crucial to determine the success or failure of an organization. Even after its elusive nature organizational culture has a huge impact on the work environment and productivity. In a way the core values of an organization form the culture and the employees and members correlate themselves to it. When a strong culture exists the performance consistency increases and reduces employee turnover. A strong culture has its share of negativity since this prevents an organization from...
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