Role Of Structure And Culture On The Performance Of A Business

2373 Words10 Pages
What is the culture and the use of an organisational structure within an organisation? To further explain the importance of the relationship of structure and culture and how both can have an impact on the performance of a business (1.1) An organizational structure is the mode the leadear/creator of a business is organising its employees and environment depending on their objectives or purpose. Organisational structure affects organizational action in two big ways: First it provides a foundation where all the procedures and routines will take place and secondly it determines the employee’s role in the company. In simpler companies there is no need of a structure as the owner manages himself but when a business expands the need of a structure is important as the responsibilities are allocated differently, the individuals know their role and therefore the managing system will be more efficient and precise and in case the company employs new people there is need of a job description. Problems related to organisational structure: 1) Delegation System Delegation appears when a person/ manager gives the power or either authority to do a certain task to a subordinate even though the final decision comes in their hands. *As the new CEO changed there are new policies and more control in the company therefore the managers are afraid to give delegation to subordinates as most of them they are in hunger of control or either they feel insecure if the
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