Understand the Relationship Between Organizational Structure and Culture.

8544 Words Dec 28th, 2011 35 Pages
Task 1: Understand the relationship between organizational structure and culture.
P1.1: Compare and contrast different organisational structure and culture.
According to Buchanan and Huczynski, an organisation is a ‘social arrangement for the controlled performance of collective goals’. Chester Barnard described an organisation as ‘a system of co-operative human activities’. Organisation are can be define as; ‘A deliberately formed group of human being with known boundaries and common goal’. Or, a group of people working together to achieved a common goal. There are 2 types of organisation: i. formal organization and ii. Informal organisation.

A formal organization is one which is deliberately constructed to fulfil specific
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An example of a decentralised structure is Tesco the supermarket chain. Each store of Tesco has a store manager who can make certain decisions concerning their store. The store manager is responsible to a regional manager.

F. Multi-functional and Multi divisional organization:
In a functional structure jobs become differentiated around areas of specialty. For example, accounting and human resource specialists are hired to handle these specialized tasks. These specialists (functional line managers) report to the CEO, but usually have autonomy for day-to-day decision-making, e.g., hiring and firing personnel.
The multidivisional structure centres on the use of separate businesses or profit centres. The M-Form is used by many organizations that compete in the global economy. General Electric is an example of a company that uses this structure. Each unit is operated as a separate business with its own corporate staff including President. Some parent companies do little more than provide capital and guide units to an organizational-wide strategy. The overall goal is to maximize the overall organization’s performance. In order to accomplish this, managers at the “parent” use a combination of strategic and financial controls.
G. Internal and external network structure: ‘A behavioral view is that a network is a pattern of social relations over a set of persons, positions, groups, or organizations’.’
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