Organisation structure and culture

12542 Words Jan 6th, 2014 51 Pages
C04_ICSA_STUDY_TEXT_STRAT_OPS_MAN.QXD:ICSA

chapter

18/6/09

10:49

Page 111

4

The organisation – structure and culture

contents
1
2
3
4

What determines organisational form?
Organisational structure
What is organisational culture?

5
6

Creating and sustaining culture
Organisational culture and national culture The importance of culture

learning outcomes
As organisations seek to compete in ever-changing environments, they need to adapt and develop to take advantage of new opportunities. To do this effectively means more than knowing which ‘levers’ to pull or which structural form to take. It also requires a deep understanding of what makes the organisation work – its culture. But what choices
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C04_ICSA_STUDY_TEXT_STRAT_OPS_MAN.QXD:ICSA

18/6/09

10:49

Page 113

4 THE ORGANISATION – STRUCTURE AND CULTURE

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FIGURE 4.1 Structure following strategy
Strategy

Structural option

Innovation (3M)

Organic/diverse – a loose structure; low specialisation, low formalisation, decentralised. Cost-minimisation
(Wal-Mart)

Mechanistic/uniform – tight control; extensive work specialisation; high formalisation; high centralisation.

Imitation/follower
(IBM)

Mix – mix of loose with tight properties; tight control over current activities and looser controls for new undertakings.

1.4 Size
Larger organisations tend to have more formalised structures and cultures. Increased size is likely to result in separate departments and possibly split-site operations.This may cause difficulties in communication with the need for effective co-ordination; otherwise, inter-departmental rivalries may develop.A rapid expansion, or decline, in size and rate of growth, and consequent changes in staffing will influence both structure and culture.There is considerable evidence that size significantly affects structure and culture. Organisations of 2,000 or more employees tend to exhibit more departmentalism, specialisation and have more rules. By that stage, they are fairly mechanistic
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