Organisation structure and culture

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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…show more content…
C04_ICSA_STUDY_TEXT_STRAT_OPS_MAN.QXD:ICSA 18/6/09 10:49 Page 113 4 THE ORGANISATION – STRUCTURE AND CULTURE 113 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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