Organizational structure and culture relationship

Organizational Structure and Culture Change | fim-mdu.info

organizational structure and culture relationship

Structure and culture are the key elements in an organization's success. If an organization operates by concentrating on these aspects, it becomes easy to attract. It is therefore essential to understand the relationship between organizational culture, leadership behavior and job satisfaction of employees. Organizational Structure and Culture are directly linked to Organizational Performance. To explain further here are my findings for the research.

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.

Relationship between Organizational Culture, Leadership Behavior and Job Satisfaction

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.

organizational structure and culture relationship

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.

Organizational Structure and Culture 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.

organizational structure and culture relationship

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.

About Organizational Structure and Culture | Your Business

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. If a firm is able to maintain an effective culture, it becomes able to develop well-planned organizational structure that makes it easy for business managers to implement changes and attain success.

Organizations are evaluated on the basis of their culture and structure that need to be managed critically. Structure is an integral part of an organization culture as it primarily deal with the establishment of culture that in turn motivates employees to work effectively in the direction of organizational goals Orna If a firm is not able to integrate its structure with culture it would not become able to encourage its employees to take initiatives and implement changes successfully that are critical for its effective performance Baligh Strategic Management Kogan Page Publishers.

Just as a forest cannot exist without its timber, the organisational culture will not stand without structure. The organisational structure is how communication moves from one area to the other, the reporting procedures where one person has decision-making powers over subordinates, and ultimately how the company gathers its resources to achieve objectives.

The culture of the organisation matures and spreads out from the support beams brought on by the structure.

organizational structure and culture relationship

The structure is then built with that end idea in mind. The concept of what will be the culture has an enormous influence on the structure as it is developed.

About Organizational Structure and Culture

The decisions about organisational cultural themselves may be influenced heavily by external events. A company that is heavily regulated by the government has to have certain procedures in place to be compliant with the law. This is especially true of financial institutions, and while they made appear extremely formal to the outsider be defined structure is necessary for financial reporting and compliance purposes.

Other cultures have to respond immediately to changes. The software and mobile application industries need to have cultures that can react quickly to any technological change.

This means the structure may have an orientation towards teams as opposed to departments, or only three levels of staff, with executives not that distant from the workforce in the hierarchy. They decide if they can abide by the company's rules, both written and unwritten. They will also decide if the role you give them will provide the right amount of job satisfaction. Understanding the Structure In a small business, employees learn whether the organizational structure provides a stable culture for everyone.

For example, if a business owner sets up the wrong kind of structure, the results can be ineffective communication and slow work processes. A business owner can improve the company culture by changing which employee is responsible for a specific duty.

For example, one employee who does payroll is not efficient at his duty. The owner can give the payroll job to another worker, outsource payroll or change the way the current employee does payroll, such as by investing in new payroll software and sending the employee to training to learn it. One of these choices might ensure that payroll is done more efficiently, but it might also change how duties are divided in the company.

Building an Innovative Culture A business owner's relationships with employees also hugely influences how the company responds to the business environment.