Advantages And Disadvantages Of Organization Culture Business Essay

3191 words (13 pages) Essay

1st Jan 1970 Business Reference this


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The relationship of the organization and the stakeholder with each other is called organization culture. The stake holders include employees, suppliers, customers, government and the community. The way in which organization treats with its stakeholders and in response to that treatment the behaviour of the stakeholders generates the culture of the organization. Both the sides have its own interest the organization wants good, compatible, trustworthy, and committed stakeholders whereas stakeholders wants the organization that can protect their interest like profit, job satisfaction, environment friendly operations, payments of taxes and obligation of laws and regulations of the country.

1.2: Types of Organization Culture:

There are four types of organizational culture that are:

The Clan Culture

The friendly and easy culture for the employees in which they enjoy working rather than taking the work as stress. Everyone knows each other professionally as well as personally. Helping each other during working hour, eating lunch together, playing games in the evening, and celebrating each other’s happy memories are the attributes of the clan culture

The Hierarchy Culture

A formal way of organization in which one manager is appointed that passes the orders and defines rules, procedures and policies for the employees. Everyone has to follow rule and procedures. In such organizations rules and policies are taken very seriously and fines are imposed who violates them.

The Adhocracy Culture

This is very communicative type of organizations. Employees are encouraged to talk each other and produce new ideas for the organization. These types of organizations are risk aversion. Taking risk in these organizations is at peak.

The Market Culture

These types of the organizations are more concern with the completion of the goals and tasks that are assigned to the employees. This type of organizations forces employees to complete task within time frame.

1.3: Advantages and Disadvantages of Organization Culture:

There are some advantages and some disadvantages in each type of the organization.

The clan culture in which friendly environment is present the advantage of this culture is that it has supportive advantage if any problem occurs then the employees eradicate that problem and the operations keep on going without any further delay. The disadvantage of this culture is that the employees take this friendly environment very lightly and they start waste their time in talking more than doing their jobs.

The hierarchy culture where rules and procedures have most importance has the advantage of getting more results and work done within time limit. The disadvantage is that if any problem occurs during operation then it takes times to fix.

The adhocracy has the best advantage of introducing innovation in the market. This culture provides the organization with new and unique ideas. And the disadvantage of this culture is that it could face loss if the idea or innovation does not work.

The market culture has the advantage of speedy work and completion of the tasks and goals, and the disadvantage of this culture is that there is no innovation or supportive environment within the organization.

1.4: Organizational Structure:

The hierarchy arrangement of the organization, its authority lines, communication channel, rights and duties of the organization is the organizational structure. How the roles, responsibilities and power are assigned and how the activities is controlled are described in organizational structure.

1.5: Types of Organizational Structure:

The working criteria of organization are called its structure. There are two main types of the organizational structures that are centralized and decentralized. In centralized all the decision making power is associated with the top management whereas in decentralized structure the employees are empowered and they can take decisions if they think that it is necessary and beneficial for the organization.

1.6: Structure of Tarmac Company:

The structure of the Tarmac Company is decentralized. The employees are empowered and they can take decisions if they think that it is necessary and beneficial for the organization. The company has goal to be the number one in field of building material and services and to gain its mission it is utilizing its employees more efficiently.

1.7: Advantages and Disadvantages of Tarmac Company Structure:

Tarmac Company is enjoying more advantages than disadvantages. This company has greater focus to satisfy its employees to retain them for longer time period. The company’s mission is to be number one in its field so the company is expanding very much on the training and retention of the employees. And this is the reason that this company is progressing with rapid speed. The disadvantage of the structure for Tarmac is that sometimes employees take such decision in hurry that produces negative result for the company.

1.8: Structure of Rent a Car Enterprise:

Rent a Car Enterprise has mixed structure. This company has centralized and decentralized structures. This company has more focuses on team building within the organization and some of the team leader has autocratic or centralized leadership style and some of them have decentralized or democratic leadership style.

1.9: Advantages and Disadvantages of Rent a Car Enterprise Structure:

The Enterprise has advantages of having committed and good skill workers. The team leaders of the company have adequate skills to lead the teams. The disadvantages of the structure are that some employees who are working under autocratic leadership are not satisfied with the leadership style and they are not free to perform to their best knowledge.

Task 2:

2.1: Relationship between Organizational Culture and Structure:

Organization culture is the main picture of the organization. Organization structure works within the culture. Organization culture defines the type and style of organization structure. It is not easy to differentiate organization culture with structure.

2.2: Effects of Culture and Structure on Organization’s Performance:

Organizational culture and structure has vital role on the performance of the organization. Both culture and structure defines the working of the whole organization. What to do and how the organization will achieve its goals and objectives they are discussed in detail in the culture and structure of the organization.

2.3: Effects of This Relationship on Tarmac Company Performance:

Tarmac wants to be the number one in the choice of the customers for building material and services and for that mission the company’s culture and structure play an important role. The relationship between culture and structure defines the way for the company’s operation to achieve that mission.

2.4: Effects of This Relationship on Rent a Car Enterprise Performance:

As Rent a Car Enterprise has mixed effects of the relationship on its performance. Some employees are contributing very effectively as they are fully satisfied with the company’s culture and structure but some employees are not doing their jobs to their best because they are confused with the mixed structure of the company.

Task 3:

3.1: Definition of Behaviour:

The reaction of anyone in response to some actions is called the behaviour of that person. The reactions have many attributed attached to it that makes the behaviour of a person that are his mood, values, judgement criteria, and perceptions etc.

3.2: Factors Influence Individual Behaviour at Work:


Social and economical background of the individuals like his race, caste, gender, and education are the demographic factors of the individuals that define his behaviour at work.

Abilities and Skills

The more abilities and skilful individual will show more good behaviour at work and the less abilities and skilful individual will show negative behaviour at work.


The perception power of the individual, if he has positive perception power then he will behave positive while if he has negative perception power then he will behave negatively at work.


How the individual’s attitude drives him towards the mission and goals of the organization will define his behaviour at work. Good attitude people will put their part in the progress of the organization and vice versa.

Task 4:

4.1: Definition of Management:

Management defines the process in which people are controlled and lead towards goals. The planning, organizing, leading and controlling of human resource and financial resource in the organization is called management.

4.2: Importance of Management in Organization:

Organizations are dependent on the performance of the employees and departments to achieve its goals, mission and vision. And to achieve all these goals management plays an important role as management plans, organizes, leads, and controls all the human resources in the organization. The success of the organization is solely dependent on the working behaviour and power of management.

4.5: Definition of Leadership:

The ability of an individual to lead, control of the people within the organization in such a way that leads to the success of the organization by accomplishing organization’s mission, vision and goals is called leadership.

4.6: Importance of Leadership in Organization:

Leadership has significant importance in the organization to achieve its mission. Organization is run on the basis of the employees and workers. If the organization has more skilled and hardworking employees then there are more chances for the organization to get success in terms of accomplishing company’s mission, goals and objectives. It is the leadership that make these employees skilled and hard worker, so the leadership is very important for any organization.

Task 5:

5.1: Tarmac Company Approach Regarding Leadership or Management:

Tarmac has lack of leadership qualities. The company is following hierarchy culture, this company has more concern on the rules and policies that are set by the organization. Its management is very well the planning, organizing, leading and controlling of the management in Tarmac company has well approach in achieving organization’s mission, vision, goals and objectives.

5.2: Rent a Car Enterprise Approach Regarding Leadership or Management:

The Rent a Car has good combination of the leadership qualities. This company has major concern and focus on generation of the leader within the company. This company has numbers of team who are engaging to accomplish organization’s mission, vision and goals. The company has mixed approach in management. It has more focus on retaining leaders than workers. The leaders who are following centralized structure have good management approach.

Task 6:

6.1: Definition of Motivation:

The stimuli that force an individual to complete or achieve a task or goal are called the motivation. Motivation can be defined as the force or power that urges an individual to perform some task.

6.2: Motivation in Work Place:

Motivation in the workplace can be positive or negative as the incentives, prizes, time frame limit threat, firing threat, career growth, and promotion greed etc

6.3: Types of Motivation Theories:

There are two types of Motivation intrinsic motivation and extrinsic motivation.

The motivational stimuli that take place within the human mind to do or perform a specific task or job are called intrinsic motivation. When the human is derive through his internal satisfaction and due to that force he perform the task or achieve something that internal satisfaction is basically the intrinsic motivation.

The motivational stimuli that take place when an individual is drive to perform some specific task to gain some external profit. To win or gain some reward that is announced by the company if an employee works hard for that reward then his extrinsic motivation is forcing him to do so.

Task 7:

7.1: Motivational Theories in Tarmac Company:

There are both types of motivational theories in Tarmac Company. Employees are working hard to get good compensation and reward from the company that is extrinsic motivational force and they also want to get promotion just to satisfy themselves and this satisfaction of the employees is the intrinsic motivational theory.

7.2: Motivational Theories in Rent a Car Enterprise:

Rent a Car Enterprise has more intrinsic motivation theory in the organization. This company focuses to train employees more about leadership qualities and the employees who want to lead a team is working hard so that he could be selected for the training program.

Task 8:

8.1: Definition of Team:

Few people working together to achieve some mutual goals is called a team. All the team members are competent and skilled to perform the task. Mostly teams are made to complete difficult tasks. Team has very significance in the organization. Different departments have different teams and each team is allocated with specific tasks and objectives. Team members contribute their hundred percent efforts to complete the task. They are equally answerable and responsible for the accomplishment of the defined task.

8.2: Definition of Group:

The gathering of different individual who come together on one place they meet each other but don’t interfere on each other task is called group. Everyone in the group is just responsible for his own task. Neither he neither interfere on other tasks nor he helps to other. But the main goal of the entire individual in the group is same.

8.3: Difference between Team and Group:

The difference between the team and group is the working style. Teams perform tasks by helping each other and they have common goals. They all are equally reasonable for the task. If the work could not be completed then whole team member suffer equally and if they achieve the goal then whole team receive the reward and appreciation. Whereas the in group individuals is only responsible his own task. They don’t have any affect if one individual fails or succeeded.

8.4: Nature of Team and Group Behaviour in Tarmac Company:

Tarmac Company has only focus in making group. The entire individual is doing their own tasks. No one is concern to anyone others’ task. Everyone is working hard for the tasks or jobs that are allocated to them individually.

8.5: Nature of Team and Group Behaviour in Rent a Car Enterprise:

The Enterprise has many teams in the organization. Teams perform tasks by helping each other and they have common goals. They all are equally reasonable for the task. If the work could not be completed then whole team member suffer equally and if they achieve the goal then whole team receive the reward and appreciation.

Task 9:

9.1: Effective Factors of Team:


The stronger leader ship the more strong is the team. Leadership defined the route for the teams. The decisions taken by leadership have of very importance in terms of team work and performance. Right decision on right time by the leadership is key to success for the teams.

Shared Vision

Teams will only perform well when they are well informed with the vision of the team. What the main purpose of the team and why the team is made it should be informed all the team members in effective way.

Attitudes and Commitment

The attitude and commitment level of the team members make the team effective. If the team have more committed members who have positive attitude towards task then the team will produce best results.

Mutual Trust

Trust of all the team members on each other is very essential for the performance of the teams. No team can gain proposed result until they have trust on each others.

9.2: Effective Factor of Tarmac and Enterprise:

Tarmac and Enterprise has all the effective factors in the teams. Both have good leadership and efficient management to control teams. The vision of the company is shared equally. The employees are committed and have positive attitude towards company’s goal and mission. All the members have mutual trust and they perform well in team.

9.3: Threat Factors of Team:


When the team members start competing with each other to win more appreciation from team leader then this competition becomes the threat factor for the team and it could affect performance of the team negatively.

Personal Conflict


Personal grudges within the team lead the team towards personal conflict and once the conflict starts within the team then the poor performance of the team is confirmed.


Like personal conflict the disagreement within the team is threat factor and it affect the whole performance of the team very badly.

9.4: Threat Factor of Tarmac and Enterprise:


Tarmac Company and Rent a Car Enterprise also facing some threat factors in their teams. Tarmac Company has less teams but the threat in those teams are present. And Rent a Car Enterprise has a large numbers of teams and some teams are leading through centralized structure and some teams are leading through decentralized structure. The teams that are under decentralized structure they have high rate of personal conflict and disagreement within the teams.

Task 10:

10.1: Technological Role in Business Success:

Technology has significant role in the success rate of the business. Technology has given the business awareness about the new markets, new ideas and new techniques to do work. Employees and workers are getting more educated because of the advancement in the technology. The timings of the operations are reduced because of the new technology. And as the time duration of operations has reduced the production capacity of the business has increased significantly and the success rate of the businesses has risen.

10.2: Technological Role in Tarmac and Enterprise:

The Tarmac Company and the Rent a Car Enterprise is using technology very significantly. Technology has increased the production capacity of Tarmac Company and it gives new ideas to rent a Car Enterprise. The new design of building material and building services has developed in Tarmac Company. The backup of cars are now more secure in Rent a Car Enterprise with the help of technology.

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