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Organizational Structure & Culture

Organisational culture and structure are key building blocks that form the identity and efficiency of any company. They determine how work is distributed, how staff communicate with each other, and what kind of environment is created in the company. Knowing how they interact is important to create a productive and healthy work environment.

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Organizational Structure & Culture

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  1. https://www.locusassignments.com/ Organizational Structure & Culture: Keys to Success Organisational culture and structure are key building blocks that form the identity and efficiency of any company. They determine how work is distributed, how staff communicate with each other, and what kind of environment is created in the company. Knowing how they interact is important to create a productive and healthy work environment. Organisational Structure: The Authority Framework Organisational structure is a formal arrangement that outlines how tasks are directed and coordinated in a firm. Organisational structure establishes hierarchy, outlines roles and responsibilities, and specifies channels for communication and decision-making. Some of the typical forms of organisational structures are: Hierarchical (Tall) Structure: With multiple layers of management, it has a narrow management span with each supervisor having a few subordinates. While it allows for close monitoring and clear lines of authority, it tends to make decision-making slow and bureaucracy increase. Flat Structure: It reduces management levels to a minimum with a higher span of control. More workers are supervised by managers with open communication and faster decision-making. It is difficult to coordinate and can burden managers. Matrix Structure: With a mix of hierarchical and flat structures, matrix organisation has employees report to multiple managers, typically both functional and project-based. This facilitates flexibility and interactive teamwork but causes confusion regarding authority and accountability. Organisational Culture: The Soul of the Company Organisational culture is shared assumptions and practices that influence how employees relate to and work with one another. Organisational culture impacts the work environment, morale of employees, and general efficiency. Some of the key types of organisational culture are: Power Culture: Decentralised to a select few individuals, decision-making is rapid, yet it can stifle creativity and employee engagement.

  2. https://www.locusassignments.com/ Role Culture: Characterised by formal roles and job specifications, this culture is procedure and expectation oriented and is stable in nature but can inhibit adaptability. Task Culture: Task culture is problem-solving and team-oriented focuses on cooperation and flexibility and is correlated with job satisfaction and innovation. Person Culture: Emphasises individual know-how and self-direction and is best suited for companies that value individual talent, for instance, consultancy firms. The Relationship Between Structure and Culture Organisational structure and culture are deeply intertwined. Organisational structure is the building block on which culture is built and is shaped, and in turn, culture can influence whether or not a structure is effective. An example is: Hierarchical Structures and Role Culture: Tall structures with multiple layers of management are usually accompanied by a role culture in which there are predetermined responsibilities and powers for each job. This can create clarity and organisation but can also cause inflexibility and reluctance to adjust to changes. Flat structures are more likely to produce a task culture that facilitates teamwork and open communication. This has the potential to enhance innovation and job satisfaction but is open to careful management to avoid coordination problems. Impact on Employee Performance and Behavior The synergy between structure and culture significantly affects employee behaviour and organisational performance: Motivation and Engagement: An inspiring culture that is grounded in a clear framework has the ability to drive employee motivation and enhance job satisfaction and productivity. Misalignment can cause turnover and disengagement. Communication and Cooperation: Organisations that establish open lines of communication, as well as a transparent-natured culture, encourage cooperation and efficient problem-solving. Flexibility: Organisations with flexible structures and cultures that are adaptable to change are best suited to keep pace with market realities and technological advancements.

  3. https://www.locusassignments.com/ Case Study: Apple's Functional Structure A great example of structure and culture synergy is Apple's function-based organisation. When Steve Jobs returned to Apple in 1997, he restructured the company from a function to a product- based structure with departments organised around specific functions like hardware, software, and marketing. This restructuring created intense specialisation, teams, and less internal competition and created a culture of innovation that produced game-changing products like the iPod and iPhone. Present CEO Tim Cook has carried on with this structure and has allowed Apple to expand even further in hardware and services. Conclusion It is important for any company to know and considerately design organisational structure and culture. An aligned structure and culture not only enhance efficiency in operations but also create a work environment that motivates employees and inspires innovation. Leaders should regularly review and modify these to make them responsive to the evolving demands of the organisation and workforce.

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