An Organisations Structure And Culture Business Essay


Many Organisations are set up in certain ways to achieve different objectives, and the structure of an organisation could help its progress towards accomplishing these objectives. Organisations both small and large are able to achieve higher sales and other profit by matching their needs with the structure they use on a day- to-day basis to operate. The main four different types of organisational structures are the matrix structure, divisional, functional and hierarchy. (Writing, 2011)

The functional structure is set up so each portion of the organisation is grouped according to its purpose. Within this type of organisation for example, there may be a sales department, marketing department and a production department. The functional structure works very efficiently for small business in which each individual department could rely on the knowledge and talent of its employees and be able to support itself. There are drawbacks for having a functional structure, where the communication and the coordination between each individual department could be restricted by the organisational boundaries of having many different departments working individually. (Writing, 2011)

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The second main type of structure is the divisional structure which is mainly used in larger companies that can operate in a wide geographic area or that contain a separate organisation that is small within the umbrella group in order to cover different types of market areas or products. For example, the now-defunct Tecumseh Products Company was organised divisionally with a very small engine division and parts divisions for each individual geographic area to handle certain needs. The advantage of this structure is that the needs could be met more frequently and specifically, whereas communication is inhibited because employees in various divisions are not working together. (Writing, 2011) However, the divisional structure is very expensive because of the size and scope. The small business could use a divisional structure on a very small scale, having several offices in different parts of the city, for example, assigning various sales teams to manage and handle different geographic areas. (Writing, 2011)

The matrix structure is a hybrid of functional and divisional structure. Its mainly used in large multinational companies, the matrix structure can be beneficial because of the divisional and functional structures that exists in one organisation, which can create power struggles because the majority of areas of the company may have a dual management, divisional or product manager and a functional manager that works at the same level and covering certain or some of the same managerial territory. In Kanter's (1984) study its showed that the processes are the most conducive to the innovation, she demonstrates the importance of the matrix structures, problem solving 'parallel' organisations that are looking for a innovative solution to an issue and a participative style of management. (Writing, 2011)

Another type of an organisational structure is a hierarchical because it defines an individual employee's position or role within the organisation, which also helps define the nature of the relationship between the employees'. (Learn Management, 2011)

Hierarchical organisations are usually quite tall with a very narrow span of control, which expands due to a move down in the structure. They're often centralised with the most vital decisions that are being made by the senior management. (Learn Management, 2011)

The main use of a hierarchy in a human society is to make sure there's a clear chain of command, the structure also helps clarify the job function by providing each person with a clear sense of whom they supervise or report to. However it will be considerably difficult imagining an organisation functioning without any form or type of structure. (Learn Management, 2011)

The disadvantages of hierarchy structure is that it will not be able to exist on its own, one of the major issues is that it gives a lot of power to the people at the top of the structure which can then lead to disputes and corruption. For example, many organisations have a board that have the authority to hire, dismiss or supervise top executives, as well as overseeing and setting up specific policies. The board mainly exits outside the hierarchy structure but in theory it's supposed to behave more democratically. (Learn Management, 2011) There are further problems which occur in a hierarchy structure other then issues arising from the concentration of power, such as overspecialization and disconnection among units within the structure that are not related. For instance, organisations use a hierarchy structure in order for them not to interact with people other then their supervisor and those who they supervise underneath them, which can then lead to lack of communication, inefficiency and duplication of the work. Most of the organisations pair hierarchy with many other structures, so that there could be a very clear chain of command, which people are encouraged looking at the organisation internally and externally and are given a set of guidelines of how they could interact in other areas within the organisation. (Learn Management, 2011)

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The concepts of the culture, power and politics come together to embrace much of which is included within the organisation as hidden parts. This plays a very vital role in helping the process of change as stated by Morgan (1989) said," The culture and politics of many organiza- tions constrain the degree of change and transformation in which they can successfully engage, even though such change may be highly desirable for meeting the challenges and demands of the wider environment." (Senior and Fleming, 2006) Changes could be planned in the terms of a more formal organisational characteristic, which is the hidden informal aspect of the organisational life that caused the organisation to become successful. (Fincham and Rhodes, 2005), (Senior and Fleming, 2006)

The characteristic of the culture is its persistence because it encourages worker commitment, it also places a very high degree of control in the hands of the management, and it helps enhance the organisational effectiveness. A corollary of various factors is inevitable due to the tendency towards the organisation is inertia that's within the organisation that emerges to resist to change. However when change does occur in an organisation a sequential process of an organisation that widely collapse, revolutionary and the replacement of a new monolithic perspective. (Senior and Fleming, 2006)

Culture has a very long agenda of various management theorists. A change in the culture means changing the images and values that inform action, and the corporate ethos and new ways of understanding the organisational life, which is in the management process. There are numerous aspects of culture such as an evaluative element that involves standards the values, social expectations and the beliefs that people hold the central and bind the organisational groups. A set of material elements or artefacts could be the culture, as there are symbols and signs that an organisation is easily recognized by but they're also the behaviour of employees, events and also the people who embody the culture. The medium of culture is mainly social interaction, and also the web of communication that may constitute a whole community. Employee's with share language is important due to the fact that it expresses and dignifies a very unique organisational culture. (Fincham and Rhodes, 2005)

The culture is the most important factor that accounts for the success or the failure of the organisation, which was argued in 1982 by Deal and Kennedy. They identified four very distinctive keys of dimensions of the culture, such as the Values, which are the beliefs that lie at the heart of the organisation culture. Another key dimension of culture is the Heroes who are the people within the organisation who embody values, also the Rites and rituals that is the routines of interaction that ensures strong symbolic qualities. The culture network is the hidden hierarchy of power or the informal communication system within the organisation. (Fincham and Rhodes, 2005)

However Peters and Waterman 1982 suggested that a psychological theory of the link between the organisation performance and the organisational culture. The culture could be looked at as a reward of work, and that we sacrifice a lot to an organisation and culture is a form of return to their efforts. (Fincham and Rhodes, 2005)

If there are any real changes that may occur within an organisation rather than cosmetic or short- lived changes, which generally happens at the cultural level. Firstly, culture could be explicitly created that the organisations have to be aware of what it takes to change the existing culture. The ability for an organisation to become culturally innovative is related to leadership and the top management that are responsible for building very strong cultures. The leaders should construct the social reality of an organisation that they shape values, vision and also attend to the drama of the organisation. Culture is often counter posed to formal rationality, which helps to solve any dilemma of bureaucracy and the formal procedures that are taken for business integrity; also they stifle innovation and autonomy. In the mid 70s there was an increasingly growing uncertainty for firms and in response to a change in the environment and the business crises that adapts to the cultures and are responsive to any changes have become very important. Morgan (1977) focuses mainly on the organisation as a whole, reliance of workers and their responsibilities (Japanese approaches), the cultivation of the harmonious relations at all levels of the structure and the merging of an individual with common objectives or goals as the success factors in organisational culture. (Fincham and Rhodes, 2005)

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When exploring cultures there are various types that are classified differently, for example Role cultures are quite highly formalised and a bound with regulations, the authority, paperwork and the hierarchy dominate relations. Task culture is the opposite and the preserve is a very strong sense of a basic mission of an organisation and the teamwork is the basis on which jobs are designed. Whereas Power culture is a single power source that can be a corporate group or an individual, where the control of rewards is a major source of power. Charles Handy (1976) identifies these types are generally tied to a specific design and structure of an organisation. The role culture has a very typical pyramid structure, whereas a task culture has a flexible matrix structure, and the power culture is like a web of communications structure. A cultural analysis identifies behaviours and it then stands on its head much of the conventional wisdom about the organisation. Legends, stories, rituals and heroes are viral key elements of the organisations functions, which could possibly serve important goals other then the formal decision-making. (Fincham and Rhodes, 2005) There are many different ways culture has been used in a organisational study such as Wilson and Rosenfield (1990) that distinguish two very distinctive schools of thoughts such as an analytical school stresses the context and the history of the organisation and on how the culture may act towards socializing force controlling the behaviour of employees. The other school of though is the applicable school that view cultures in the forms of commitment and determination on achieving the goals in order to manage a successful organisational change. (Fincham and Rhodes, 2005)

The culture within an organisation can sustain itself by self- selection, by selection and by socialisation. The self selection are people who could possibly be potential candidates to apply for a position within the organisation will immediately and unconsciously, may compare the organisational culture of that organisation with their own personal lifestyle. The majority of them will drop out, but the others may feel attracted to the position. (Fincham and Rhodes, 2005) The selection is the people whom are responsible for the new personnel act, which they'll not only investigate the way the employees meet the formal requirements, needs and wants but they'll compare the candidate with the dominant organisational culture, Some of the potential employee's may drop out which will then begin the process with the letters of application. Lastly, the socialisation will further explain how socialisation works within an organisation. (Fincham and Rhodes, 2005)

Trompenaars and Hampden-Turner have identified four different organisational culture which are Eiffel tower culture that is a rational and strong hierarchy characteristic where the role is vital that the personality of the managers. (Trompenaars and Hampden-Turner, 1997) In this type of organisational culture personal relationships are evaded because it can cause an issue on the impact on the evaluation of the employees. Many employees gain commitment and motivation on their job position within the organisation and the rules that they govern. Another culture is Guided missile culture, which is mainly based on the task orientation and the equality, that relates to many tasks in a larger process to reach their objectives. (Trompenaars and Hampden-Turner, 1997) The culture is spreaded in a project orientation that will imply loyalty towards the projects and the professions then an organisation because the individual will change the organisation to be hired an exclusive new project that requires competence. The motivation is very intrinsic to projects and people because it can implement the current pay for the performance practices in order to reach the goals. (Fincham and Rhodes, 2005) (Senior and Fleming, 2006)

The incubator culture, defines the higher individuals and egalitarian and the self-oriented, the organisation meets the needs and wants of an employee due to motivation being intrinsic to individuals and intense. Lastly is the family culture that is characterized by good relationships among the employees within the organisation and also outside. (Trompenaars and Hampden-Turner, 1997) (Fincham and Rhodes, 2005)

Different cultures can be adopted in many countries which is present and their influence may change, however the more attractive the corporate culture is seen by employees whether their more committed or not. The corporate culture does influence the motivation of the employees, when having a attractive corporate culture it must be real within the behaviour and structure in the organisation and not only in words that they promote very pleasant value. The main reason for this is that people could easily be perceived in the variations between the reality and what is going on or the claimed corporate culture. If the employees are motivated then the culture promoted is not genuine which will cause a loss in their motivation and feel "betrayed and disrespected" (Earle, H.A., 2003). This activity could lead to employees resigning from their position within the organization, the impact of the culture on the motivation could be seen in its capacity to have continuous productive, dynamic and challenging environment. The creativity and innovation level could be endured to help keep employees still motivated and alert. (Trompenaars and Hampden-Turner, 1997) (Fincham and Rhodes, 2005)(Senior and Fleming, 2006)

Abraham Maslow believes that every individual has different needs and wants which need to be satisfied, his theory consists of five various levels. Each of these levels are identified for example, in an employee, a manager will be able to distinguish what type of concept may be used as a motivational factor. The corporate culture has a massive role that provides a framework where the motivational factors can operate. Other than motivation, the corporate culture facilitates a crucial aspects of the organisation life as a unity amongst the employees and overall the wellbeing. (Senior and Fleming, 2006), (Griffin and Moorhead, 2011)

The Maslow theory is rooted in western traditions, since it started to steer the action that's driven by the self-interests. The individual's needs is highly focused on in their work environment, Maslow argued that there's a broad outline of appreciation and satisfaction and needs of the individuals follow in a similar pattern. The theory presupposes that an individual cannot be able to pursue the next needs that are required in a hierarchy, before the current one is satisfied. The pyramid has the "lower" needs at the bottom but when climbing up towards the top of the pyramid, the individual gets closer to the self-actualization needs. Generally managers have used Maslow's pyramid as a guideline in order for employees not to find it complicated to express their thoughts and ideas about what they would like in their position in the organization. (Senior and Fleming, 2006)

Maslow theory is very innovative and traditional, it can be used as a motivational practice so that the higher an employee goes up in the pyramid the closer they'll get to the innovative practices. The physiological and the safety elements are linked to the basic problems for example, one, which has a job and also getting a financial compensation in the return for their services, they've provided at the workplace. The self-esteem and the self-actualization could be related to the job or the work environment. ((Senior and Fleming, 2006), (Griffin and Moorhead, 2011)

In conclusion, the organization structure and culture could determine their ability to transform. The culture will certainly affect people who are task -orientated or person-orientated corporate culture. The reason for this is because a person-oriented culture does emphasize the use of the innovative motivation practices, in order to develop the individual and their productivity within the organization. This is a very innovative practice that could lead to a high amount of entrepreneurship and freedom spirit who facilitate the innovation and the creativity which is also shown in the Maslow theory, also a traditional motivational tools could be promoted by the task oriented culture. The organization structure plays a big role because it could determine their success and who has authority and who does not and its also helps identify any issues that may occur in specific levels of the structure, would be dealt with immediately instead of affecting the organization as a whole.

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