Corporate Culture And Organizational Architecture

1612 Words Aug 21st, 2015 7 Pages
Corporate culture and organizational architecture should be interconnected in any successful organization or company. According to Brickley et al (2009) Organizational architecture consists of three legs of an organization; assignments of right to decision, individual rewarding methods and systems used in the evaluation of business units and individual performance. Organizational architecture on the other hand can be described as the designed framework of departments of a company such as responsibility and description of every individual and managerial command chain (Brickley et al, 2009).
Corporate culture involves how authority and work are organized; it also refers to how individuals are controlled and rewarded for their exemplary work, as well as social rituals, heroes and customers (Schein, 2010). Culture development is based on three elements of architecture. A significant example is Organo Gold. Organo is a well-known investment company that manages investors’ portfolio. The company suggested to its clients to purchase coffee, though, internally, economists knew that the stock decreased in price. They did not support the selling of the stock. Their ethical violation and deceit triggered shockwaves in the investment sector thus forcing the management to put up measures that curb any disaster. Organo Gold had developed a culture of mistrust, and deceit among some of its most trusted clients. It therefore seems that Organo Gold lacked one leg of architecture; the…
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