Professional Documents
Culture Documents
hypothetical examples
Organizational structure can be referred to as a system that is used to define the
hierarchy within a company. It identifies each work, its function, and the appropriate place it
reports to within the business (Friend & Media). Furthermore, it is formed to establish how
an enterprise operates and assists the business in achieving its goals to allow for future
development. A structure depends on a businesss strategy and plans. For instance, in a
centralized type of structure, the top level managers do most of the decision making duties
and tightly controls departments and divisions. A business that is structure-less may face the
following challenges.
intentionally so that the organization can achieve its goals (Saritha Pujari Organization). On
the contrary, informal structure commonly develops around project or social groups. It is
based on camaraderie, and thus, there is immediate response from people. This saves
individuals time and effort; therefore, making it easier to work within the informal type of
structures. Moreover, individuals depend on it when the formal structure becomes ineffective.
For instance, if an organization changes or grows but it does not reevaluate its work group or
hierarchy formal structure becomes inefficacious and is replaced with informal structure.
Formal structure has advantages. It pools together similar resources (Shtub & Karni,
2010). As a result, activities of each department are coordinated. To illustrate, when
individuals who share a common responsibility and expertise are pooled and provided with
suitable equipment and facilities, utilization of resources is improved. Further, the flow of
information in every section of the company is made easier due to common terminology,
background, and interests of the individuals in each group. Proper communication is a critical
factor that impacts organizational learning.
Another advantage is the systematic working. It results in smooth and systematic
functioning of a company. As an illustration, in formal structure, each organizational unit acts
as a link to a chain. In other words, each organizational unit gets inputs from the previous one
and produces output that is the input for the next unit that takes part in the process. Also,
formal structure ensures that there is no overlapping of work. Work is divided among the
employees and departments, therefore, preventing overlapping and duplication of the job.
Even more, the structure puts more emphasis on job than interpersonal relations which is
stressed in informal. The fifth benefit is the fact that the structure is formed to facilitate
achievement of the organizational structure. The last of the vantage is the existence of the
chain of command. It gives a clear definition of the superior-subordinate relationship, that is,
who reports to whom.
approach because more individuals are allowed to contribute to the decisionmaking process. In this way organizational culture and structure are interrelated.
Conclusion
References
Friend Lucy and Media Demand. (n.d). What is the meaning of
organizational structure? Small business. Retrieved from
http://smallbusiness.chron.com/lack-organization-lead-company22804.html
Mcnamara Carter.(2000). Organizational culture and changing culture.
Managementhelp. Retrieved from
http://managementhelp.org/organizations/culture.htm#anchor1427719
Root III George N., Media Demand .(n.d). What does a lack of organization
lead to in a company? Small business. Retrieved from
http://smallbusiness.chron.com/lack-organization-lead-company22804.html
Saritha Pujari Organization. (n.d). Formal and Informal Organization:
Features, Advantages and Disadvantages. Yourarticlelibrary.com.
Retrieved from http://www.yourarticlelibrary.com/organization/formal-andinformal-organization-features-advantages-and-disadvantages/8654/
Shtub, A., & Karni, R. (2010). ERP: The dynamics of supply chain and
process management. New York: Springer. Retrieved from
http://ir.nmu.org.ua/bitstream/handle/123456789/139943/2ef2f1917
95495e570a6935325c1e1ff.pdf?sequence=1
http://theclariongroup.com/images/insights/Structure_less_Structures.pdfWhat is the
relationship between organizational structure and organizational culture? (n.d). Wisegeek.
Retrieved from http://www.wisegeek.com/what-is-the-relationship-between-organizationalstructure-and-organizational-culture.htm