Culture and Structure
Organizational structure and culture are important elements in a company. Why are these important and how do they affect each other within an organization? The culture is created when the company founders establish a vision or mission (Robbins, Decenzo, & Coulter, 2013). This is their dream and the future of what they have created. The values are traits that are learned from the first employees hired, which then creates the culture or the personality of the business.
The definition of organizational culture is ‘The shared values, principles, traditions, and ways of doing things that influence the way organizational members act’ (Robbins, Decenzo, & Coulter, 2013, p. 39). Structures can be some form of either a Mechanistic or an Organic formation. Mechanistic structures are a top down organization, which is more formal, using the traditional chain of command decision making process. Organic structures are informal, flatter organizations using limited rules. How do these interact with the culture? The company strategy, size, technology and environment all play a role in the development of the structure.
The structure of a company should enhance and expedite the attainment of the company goals (Robbins, et al., 2013). . When companies are new and young, the structure can be organic to enable a small organization to make quick decisions. As companies grow in size, more rules must be put into place to control costs and regulations. When a company is around 2,000 employees, it has probably already become mechanistic. Technology plays a role in this as well. When a company is using ordinary technology, they have a tendency to become mechanistic as they grow. In opposition, companies with state of the art technology will be able to remain organic.
Finally, the environment affects the structure in that a stable environment is more suited in a mechanistic organization. When a company requires quick decisions and is in a global market, they work best with an organic structure. If the structure is not organic, the company cannot move fast enough to keep up in a global market. Managers need the autonomy to make decisions independent of higher levels.
How does the creation of the corporate culture interact with the corporate structure? If one changes, does it change the other? The relationship that an employee has with an organization is an exchange that occurs (Gutierrez, Candela, & Carver, 2012). The culture is a social exchange that is experienced by the company and the employee; it can be physical or intangible. When the culture is such that an employee feels invested, that is the best outcome for the company. Employees work hard and are committed to making the company successful when they buy into the culture. The culture or characteristics of a company affect the employee attitude, and behavior, work environment and management practices.
When the culture is established and...