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Every organization has its own chain of command. Roles, power and responsibilities assigned, control and coordination, and information flows between the different levels of management are determined by organizational structure.
Organizational structures are of two types:
- Formal Structure
- Informal Structure
A formal organisation is one which is intentionally constructed to fulfill specific goals. It is characterized by planned division of responsibility and a well defined structure of authority and communication. The organization structure provides for consistent functions and roles, irrespective of changes in individual membership.
An informal organization is one which is loosely structured, flexible and spontaneous, fluctuating with its individual membership.
Organizational culture is basically how an organization presents itself. Organizational culture includes expectations, experiences, philosophy, etc.
There are several types of organizational culture. They are:
- Power Culture
- Role Culture
- Task Culture
- Person Culture
This kind of culture exist where a single person or a small number of individuals are dominant within an organisation. They make all the important decisions for the organization. This kind of culture may exist in a small business or part of a larger business.
This kind of culture exists in large hierarchical organisations in which individuals have clear roles (jobs) to perform which are highly specified. Individuals tend to work according to their job description, and tend to follow the rules rather than being creative.
This kind of culture exists when teams are formed to complete particular tasks. A distinct team culture develops, and because the team is empowered to make decisions, task cultures can be creative.
It is the most individualistic form of culture and exists when individuals are fully allowed to express themselves and make decisions for themselves. A person culture can only exist in a very loose form of organization.
For this reason I have selected 2 organizations to compare their organizational structure and culture.
- Mohammadi Homes Ltd.
- Bhai Bhai General Store
Mohammadi Homes Ltd.
Mohammadi Homes Ltd. is one of the subsidiary company of the parent company Mohammadi Group of companies. Mohammadi Homes Ltd. is a real estate business which emerged in 1978. While they ensure standard construction quality as per the A.C.I. code, the company appears with different commitment by applying update techniques of modern architecture.
Mohammadi Homes Ltd. assures living in a modern house with a good environment at an affordable price.
The Organizational Culture of Mohammadi Homes Ltd.
Mohammadi Homes Ltd. follows the power culture. The decision is made by the main director due to it being a subsidiary of Mohammadi Group of Company.
The Structure of Mohammadi Homes Ltd.
Every large company follows formal structure. And so does Mohammadi Homes Ltd. They are a centralized organization, the concentration of authority for making decisions at the top level of the organization.
Sales and Marketing:
Sales main work is that maintain or handle of sales, how much sales of product and calculation or measures of sales unit and marketing mainly focus on the advertisement, billboard, newspaper, etc
Accounts main job is to calculate budget for projects, etc and other financial issues
Technical main job is to provide technological or IT support for the company. They are usually professionals who have extensive knowledge about the technical aspects of the company and excel at problem solving.
Figure: Structure of Mohammadi Homes Ltd.
The Organizational Culture of Bhai Bhai General Store
Bhai Bhai General store follows the person culture. The decision is made by the owner and employees perform their duties according to owner decision. Like, the owner wants to decorate the store with our national flag during Independence Day so the employees decorate the store with paper flags, etc.
The Structure of Bhai Bhai General Store
Due to it being a retail store it follows informal structure. It is centralized, the owner makes all the decisions.
Figure: Structure of Bhai Bhai General Store
Compare and Contrast the Structure and Culture of the 2 organizations.
Both Mohammadi Homes Ltd. and Bhai Bhai General store follows centralized structure. Mohammadi Homes Ltd. follows power culture while Bhai Bhai General store follows person culture. For both organizations decision are made by the head of each respective organization main director, owner. For Mohammadi Homes Ltd. decision may take some time to filter down while in Bhai Bhai General store decision does take time and can be implemented instantly. Communication with the employee is good for both due to span of control is wide.
Relationship between an organization’s structure and culture can impact on the performance of the business
Organizational structure and culture creates several concepts, strategies, and situations which affect every level of planning.
Organizational structure and culture has an impact on business performance. The good point is that organizations structure and culture creates a difference which makes it easy to distinguish different organizations and also easy to understand job position of individuals in the same organization. Employees work well for achieving the organizational goal when they are provided a sense of individuality. Organizations structure and culture can inspire dedication within the employees towards the organization. The norms and values of society can enhance the stability of the social system within the organization. Having strong culture means having a good working environment where employees shares different norms and values. Organizational structure and culture provides an appropriate ideal working environment. Organizational structure and culture changes the viewpoint and mannerism of employees and it also serves a means of control and a sense of making. Every organization has set of rules and regulations which everyone within the organization must follow. Organizational structure and culture forms an organizations unpleasant rules and regulations. Organizational structure reveals the responsibility of everyone within the organization which reflects who will answer to whom. An organization must make the right decisions at the right time through strong organizational structure.
Organizational structure and culture also has bad impact on business performance. Organizational culture becomes a liability when people working for the organizations don’t agree on sharing their values with others which leads to internal conflicts. Dynamic environment of an organization affect business effectiveness. Complex organizational structure slows down decision making process and also when decision making is centralized others in the structural hierarchy will be bored or detached.
Factors influencing individual behavior at work
In Mohammadi Homes Ltd. everyone within the company must be polite and gentle. They should not act rudely towards their co-workers. For example, suppose one employee said something hurtful to his co-worker that could create a unpleasant atmosphere between other employees in the company. Have enjoyment and laughter with employees so that they can be harmonious during work. They play games like badminton, etc while they are off from the job for the day. And as for Bhai Bhai General store owner must show proper courtesy towards his employee. Like, showing them proper respect, gratefulness for their daily hard work,etc. Basically both organizations must keep their employee satisfied otherwise they won’t perform well, they would be demotivated, dissatisfied.
Rather than the main director or the owner make all the important decision they should allow the employees within the organizations to come up with their own ideas that will increase the creativity of the employees and everyone else within the organizations and they will be interested, motivated, entertained and will be more eager, enthusiastic about doing their job. This will also lower the pressure, the stress from the main director or owner.