The Difference Between Organizational Culture and Organizational Structure

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u can maintain full control over the organizational structure of your business and you can also exert a strong influence over the company culture. Business owners need to understand the difference between the two because these aspects of your business can have a major influence on the firm's success or failure.

Basics

The organizational culture of a business reflects the mentality, work ethic and values of the company's owners and employees. Some firms are regarded as having a cut-throat culture in which employees aggressively compete for promotions and bonuses without regard to one another's feelings. Other firms have a family-friendly culture or a culture that encourages creativity. The term "organizational structure" refers to the actual framework of a company. In the United States, you register your business as a sole proprietorship, partnership, corporation or as a another type of entity. Your choice of structure has a direct impact on the firm's tax liability and the way that day-to-day operations are handled. Control

You decide on your company's structure when you first start operations. Aside from choosing to register as a corporation or some other type of entity, you also decide how to arrange the chain of command. You can maintain tight control with a centralized structure or you can give departmental managers a degree of autonomy. Initially, you also get to determine your firm's corporate culture because the culture starts to develop after you have your first interactions with employees and clients. Although you can set the tone by trying to create a relaxed culture or a sale-focused culture, your employees' attitude toward work also has an impact on the culture. If you try to create a warm work environment but the managers that report to you mistreat their employees, then, despite your own efforts, your firm will have a hostile or negative organizational culture. Change

The corporate culture of a business can change at any time. You...
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