This paper investigates the role of culture in an organization. Literature suggests that many factors including structure of the organization affect the culture of an organization. The most common types of organizational structures are functional, divisional, and matrix. The elements of a strong organizational culture are a well-defined mission statement, respect for members of the organization, and open communication. Three models used to change organizational cultures are Lewin’s change management, McKinsey 7-S model, and Kotter’s 8-step change model. The role an individual plays, employee or manager, in an organization can affect the perception an individual has concerning the culture of the organization. Leaders often look at …show more content…
Usually, to be able to change the culture in an organization, leaders must modify the organization’s structure. However, it is possible to retain the organizational structure while changing the culture if modifications are made to the assigned rules employees (Bianca, 2015). The culture of the organization has a strong effect on the quality of work, as well as how employees feel about their job (Janićijević, 2013).
Types of Organizational Structures
Organizations come in various shapes and sizes, and so do the structures that are used (Hernaus, Aleksic, & Klindzic, 2013; O 'Farrell, 2015). Although there are three major types of organizational structure are functional, divisional, and matrix, many organizations do not adhere to a specific type of structure. Regardless of the structure, each type has advantages as well as disadvantages (Hernaus et al., 2013; O 'Farrell, 2015).
Functional
A functional or bureaucratic organizational structure, is used when leaders divide the company based on specialties such as accounting, marketing, and sales (Hernaus et al., 2013; O 'Farrell, 2015). Advantages to a functional organizational structure include dedication to one function and possibly cost savings and efficiency. A potential disadvantage to a functional organizational structure is the conflict that can occur because of poor communication, lack of understanding of the needs between
An organization must align its strategy and structure to allow itself to achieve performance improvements over time. The four different structures, simple, functional, multidivisional, and matrix, are all suited to allow companies with different strategies to succeed but the company must decide which of these is correct for itself. A small start-up company will overburden itself with excessive cost if it seeks to implement a functional structure because it clearly will not have the talent on hand to create whole departments of HR employees or accountants. On the other hand, a company that grows to become a large multi-national
There is no “one size fits all” when it comes to structure and culture within an organization since industries and situations can vary. Furthermore, if an organization wants to improve its effectiveness and performance, their organizational culture needs to be strong and provide a strategic competitive advantage when it comes to its beliefs, and values. Organizations can differentiate itself from one another by those that do not have structure and culture. It is important to know that employees in all organizations want to work in an environment of trust and respect where they
The organization culture as a leadership concept has been identified as one of the many components that leaders can use to grow a dynamic organization. Leadership in organizations starts the culture formation process by imposing their assumptions and expectations on their followers. Once culture is established and accepted, they become a strong leadership tool to communicate the leader 's beliefs and values to organizational members, and especially new comers. When leaders promote ethical culture, they become successful in maintaining organizational growth, the good services demanded by the society, the ability to address problems before they become disasters and consequently are competitive against rivals. The leader 's success will depend to a large extent, on his knowledge and understanding of the organizational culture. The leader who understands his organizational culture and takes it seriously is capable of predicting the outcome of his decisions in preventing any anticipated consequences. What then is organizational culture? The concept of organizational culture has been defined from many perspectives in the literature. There is no one single definition for organizational culture. The topic of organizational culture has been studied from many perspectives and disciplines, such as anthropology, sociology, organizational behavior, and organizational leadership to name a few. Deal defines organizational culture as values,
small business can use one of three primary organization structure options: functional, divisional or matrix. Essentially, the organizational structure creates a business hierarchy to increase the efficiency and effectiveness of the business operations. Different small
Within organizations, large and small, there exists a sense of identity among its members that separates it from other organizations. This sense of identity is known as organizational culture. All over, managers seek to influence and change this into something that can be beneficial for the organization. In his article, “The Six Levers for Managing Organizational Culture”, Professor David W. Young defines the different elements that can influence and change the culture within the organization and how the reader can use these “levers” to their advantage. While the author does present a decent explanation for changing the culture of an organization, he leaves many questions unanswered that leaves his argument incomplete.
There are three main organizational structure types used in business today. They are functional, project and matrix. They each have their strong points and weaknesses. I will list the strengths and weaknesses of each while comparing them to each other.
In this paper I will discuss the effects and responsibilities leaders have on an organizational culture. I believe leaders have an enormous effect on the well-being of an organizational culture. Leaders must take an active role within their organization's culture. Whether positive or negative, in an organization, things tend to follow suit "down hill." A leader has the power and influence to maintain, create, or repair an organizational culture. However, this can prove to be a delicate and challenging task.
Organizational structure is a system that consists of explicit and implicit institutional rules and policies designed to outline how various work roles and responsibilities are delegated, controlled and coordinated. Organizational structure also determines how information flows from level to level within the company (investopedia.com, 2017). If one level or department does not undertake its function accurately the entire business suffers, because all the departments interrelated to each other. There are generally four types of organizational structure:
In today’s dynamic business environment leadership must understand the value and importance of their organizations’ culture. While it may never be formally defined, leadership must have a vision of their intended culture and a plan for creating and maintaining it. This vision will serve as the potter’s clay that determines everything from the dress code to the organizational structure. This paper examines two methods organizations can choose to create and maintain a healthy culture.
An organization’s culture governs day to day behavior. This type of power may be seen as a control mechanism, which businesses use to manipulate internal and external perception. Every organization has a set of assumed understandings that must be adopted and implemented by new employees in order for them to be accepted. Conformity to the culture becomes the primary basis for reward by the organization. “The role of culture in influencing employee behavior appears to be increasingly important in today’s workplace, as organizations have widened spans of control, flattened structures, introduced teams, reduced
The culture of an organization has a great impact in the productivity of the employees and influence the individual behavior of the
Different and many definitions about “organizational culture” have been given since managers started to use this term at late of 80s , when it became widely known.
Every Organization has a culture that constitutes the expected, supported and accepted way of work and behaviour. These influence everyone 's perception of the business from the chief executive to the lowest rank.
Literature on organizational effectiveness shows that organizational culture plays a significant role in motivating and augmenting the value of intellectuals particularly the employees. The concept of organizational culture is important in knowledge intensive corporations. This paper makes it clear that culture is an essential factor in organizations and helps maximize the value of human resources. Schein 1990 advocates that organizational culture is even more significant in contemporary organizations than it was in the past. Organizational culture leads to improved coordination and integration in organizations with the result being improved organizational effectiveness. Through organizational culture, an organization is able to process invention and the capacity to successfully bring in new technologies. Organizational culture also enables organizations to effectively control dispersed work units and augment employee diversity. It also allows for
Existing culture can in times be very hard to continue with because of the change in the growth or in the strategic change in the organisation. At such appropriate web of culture is important to be identified or that can be a problem in the progress of the organisation. These identified elements will give organisation a bigger picture of what was going wrong and how can they change it towards betterment of the organisation.