The Influence of Organisational Structure on Organisational Culture

One the impact of such functional structure is that the effective communication and synchronization among division might be limited due to organizational restriction for having several divisions that will work individually (www.business2000, 2016).

Organizational structure has been set up to facilitate all goal achievements. It is a way to motivate their employees and get them to work together. It also helps its employees to follow the organizations goals, and work together as a team. In order to do this, they need to have an organized structure to be able to run the company smoothly. A main foundation of every organization is to post their mission statement and goals everywhere so that their employees can see them. An organizational culture can consist of common shared beliefs and values that are established by the organization’s leader, and then communicated and reinforce through various methods, this helps shape employee perceptions, behaviors and understanding. Overall, organizational structure and culture can effect progress of many organizations in a positive and negative way.

Structure is the basis through which an organization seeks to create control the direction of an organization. This is completed through clear definitions of the allocation of work, differentiation, and the coordination of having those responsibilities working together towards the efforts of the organization, integration (Bolman & Deal, 1993, pp). Through these methods, the organization is able to devise a division of labor that collaborates to bring about the missions and goals of an organization. The structure that comes about from this can be varied in their rigidness and flexibility it allows, and to an extent this is a great contribution to its success.

The other form involves grouping the wire harnesses by product/geography known as the multidivisional form (M-form). The M-form is known for managing, organizing, growth and diversity of large/growing organizations. “To succeed, the M-form required the existence of a strong and professional management hierarchy, and the new decentralized organizations required strong management both at the headquarters and in the divisions” (Witzel, 2005). Decentralizing improves strategic planning by freeing up senior management time. This grouping can cause coordination problems amongst subunits, performance plans are difficult to construct, and it is less effective with local product information. Maintaining the M-form requires a strong strategic plan and management.

All businesses have organisational structures, even if they are small or big, they have some type of structure so they can operate productively.

This structural form allows for an organization to be divided into various divisions where people with diverse skills are kept together in the form of groups that focus on particular customers or services. Each division has its own finance, health services, human resources and marketing staff. Each division has its own knowledge, abilities, expertise and resources required to function properly and handle tasks on its own. Changes in the environment do not affect the HCO. With a decentralized authority, departments under the divisional form are able to monitor themselves and adjust accordingly, and make faster

Mintzberg (1981) added that centralisation tend to happen within the divisions as they hold the responsibility of their performances. However divisional structure is difficult to be dynamic because of the procedures and red tape they have to go though to make a change.

Using a solid organisational structure allows State Street and Coca Cola to improve attention on a single set of goals and aims instead of each group working towards its own program. This is the consequence of the flow of communication an organisational structure offers, as well as the founding and establishment of duty and admiration for the company hierarchy that comes from strong structure. It helps the company to use properties and resources intelligently in the pursuit of company goals as opposed to maximising hard work or testing with selections maybe not in the company's best

Deriving from this structure, with regard to separate businesses, each division demanded standardization and had an overall "Frankfurt is Orlando" mindset. However, it was recognized that each division was very different than the next and had varying distribution and selling methodologies. Hence, each division would have its own instance of the system to manage the customer fulfillment process, and a decentralized approach to implementation details (such as each division choosing its own partners). This minimized the risk of having the relative requirements of one organization driving the practices of another.

* Lack of Information and communication across divisions Each division maintains its own marketing, manufacturing, logistics and administrative departments (Silos)

Due to the coordination and control problem that surfaced during the 1920s, most large American corporations that include GM had adopted the Multi-divisional organizational structures better known as the M-form structure to respond to the crisis. M-form consists of operating divisions, each representing a separate business or profit centre in which the top corporate officer delegates responsibilities for day-to-day operations and business-unit strategy to division managers. Each division represents a distinct, self-contained business with its own functionality

This business structure has many advantages. It empowers employees to identify shortfalls or problems and correct them. Employees identify their strengths and are encouraged to explore them. Under this business structure employees are encouraged to communicate with each other. This business structure is highly adaptable. Employees have autonomy and truly control how the business in operated.

  In order to understand and evaluate different business structures one must be aware of the exact meaning and standards, which make that structure. Different business function in different ways. The World today is full of innovative and new structures, company cultures and ways in which companies base their work. Globalization has emphasized the meaning of company culture in ways that have led to completely new ideas, while technology has changed the face of the industry (The Age of Globalization: Impact of Information Technology on Global Business Strategies, 2007). In order to fully grasp the concepts of business structures and cultures the movies “The Devil

* Political science in explaining how power struggles between groups within organisations can stem from variances in performance and agendas.

At least two different organizational structures are identified, described, and compared in terms of their design principles.