Relationship Between Structure, Culture and Business Performance

Only available on StudyMode
  • Download(s) : 890
  • Published : March 14, 2013
Open Document
Text Preview
OB

Definition of 'Organizational Structure'
Explicit and implicit institutional rules and policies designed to provide a structure where various work roles and responsibilities are delegated, controlled and coordinated. Organizational structure also determines how information flows from level to level within the company. In a centralized structure, decisions flow from the top down. In a decentralized structure, the decisions are made at various different levels. http://www.investopedia.com/terms/o/organizational-structure.asp#axzz2M6qIi3iY Organizational culture

The values and behaviors that contribute to the unique social and psychological environment of an organization. organizational culture includes an organization's expectations, experiences, philosophy, and values that hold it together, and is expressed in its self-image, inner workings, interactions with the outside world, and future expectations. It is based on shared attitudes, beliefs, customs, and written and unwritten rules that have been developed over time and are considered valid. Also called corporate culture, it's shown in (1) the ways the organization conducts its business, treats its employees, customers, and the wider community, (2) the extent to which freedom is allowed in decision making, developing new ideas, and personal expression, (3) how power and information flow through its hierarchy, and (4) how committed employees are towards collective objectives. It affects the organization's productivity and performance, and provides guidelines on customer care and service, product quality and safety, attendance and punctuality, and concern for the environment. It also extends to production-methods, marketing and advertising practices, and to new product creation. Organizational culture is unique for every organization and one of the hardest things to change. http://www.businessdictionary.com/definition/organizational-culture.html

different between organizational structure and culture
There is a ton of information out there on organizational culture and about every detail of it you can imagine. The relationship between organizational culture and organizational structure is an important theme that is often overlooked. The two can be difficult to clearly distinguish from one another, and even more so to clearly define within an institution. Organizational structure works within an organizational culture, but it is not completely separate. The two are very much intertwined.

Organizational culture is more of a larger picture, a more general term that refers to a large umbrella of smaller topics and issues within an organization. The structure refers to the infrastructure, and the various methods and practices within that infrastructure, that helps an organizational culture run with the efficiency and consistency that should be the hallmark of any healthy organizational structure, whether it is in a corporation, sports team, or any other set up that is large enough to create its own organizational culture.

This makes the structure an integral part of any organizational culture, but also narrows out a very specific segment of the culture as its own responsibility. Organizational structure will deal primarily with the set up of the culture. How management works, which specific responsibilities supervisors have, how a complaint is passed through the ranks-these are all issues within the organizational culture that are directly tied to how an organizational structure works. The structure is not limited to those three examples, but it would certainly include all of them.

Another common way to describe how structure works is to say that organizational structure is the way in which the interrelated groups within and organization are set up to allow them to function smoothly from a larger standpoint. The two main purposes of a successful organizational structure is to ensure effective communication between various parts of the company, as well as...
tracking img