What is organizational culture?

All company have their
own different personality, just like people do. The personality of an organisation is referred to as its
culture. In groups of people who work together, organizational culture can have
a big impact on the behaviour of the members that are part of the organisation.

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Organizational culture
is an arrangement of shared presumptions, qualities, and opinions, which
oversees how individuals carry on in organizations. These mutual values impact
the general population in the association and manage how they dress, act, and
play out their employments. Each organisation creates and keeps up a one of a
kind culture, which gives rules and limits to the conduct of the individuals
from the organisation.

Cartwright propose
culture is a form of manging authority, this is because when authority is
accepted by employees the power and influence of management increase. Culture
can increase the value of management authority in three ways: (1) when
employees submit themselves and accept the rules of the organisation (2) when
employees conduct the value of the organisation at the right time (3) when
employees are motivated to innovate (Cartwright cited in Mullins 2010).

TYPES OF ORGANISATION
CULTURE

POWER CULTURE

Central power source
with rays of in?uence from the central ?gure throughout the organisation. A
power culture is frequently found in small entrepreneurial organisations and
relies on trust, empathy and personal communications for its effectiveness.
Control is exercised from the centre by the selection of key individuals. There
are few rules and procedures, and little bureaucracy. It is a political
organisation with decisions taken largely on the balance of in?uence.

ROLE CULTURE

Role culture is often
stereotyped as a bureaucracy and works by logic and rationality. Role culture
rests on the strength of strong organisational ‘pillars’ – the functions of
specialists in, for example, ?nance, purchasing and production. The work of,
and interaction between, the pillars is controlled by procedures and rules, and
co-ordinated by the pediment of a small band of senior managers. Role or job
description is often more important than the individual and position power is
the main source of power.

TASK CULTURE

Task culture is
job-oriented or project-oriented. In terms of structure the task culture can be
likened to a net, some strands of which are stronger than others, and with much
of the power and in?uence at the interstices. An example is the matrix
organisation. Task culture seeks to bring together the right resources and people,
and utilises the unifying power of the group. In?uence is widely spread and
based more on expert power than on position or personal power.

 

 

PERSON CULTURE

Person culture is
where the individual is the central focus and any structure exists to serve the
individuals within it. When a group of people decide that it is in their own
interests to band together to do their own thing and share of?ce space,
equipment or clerical assistance then the resulting organisation would have a
person culture. Examples are groups of barristers, architects, doctors or
consultants. Management hierarchies and control mechanisms are possible only by
mutual consent. Individuals have almost complete autonomy and any in?uence over
them is likely to be on the basis of personal power.  

What is organizational structure?

Organizational
structure defines how the roles, power and responsibilities are assigned,
controlled, and coordinated, and how data flows among the different levels of
management. A structure depends on the organization’s objectives and strategy.
In a centralized structure, the top layer of management has most of the
decision making power and has tight control over departments and divisions. In
a decentralized structure, the decision making power is distributed and the
departments and divisions may have different degrees of independence.

TYPES OF ORGANIZATION
STRUCTURE

FUNCTIONAL STRUCTURE

Structured by area of
function and those with the same function will be grouped together such as IT,
finance or marketing. Allows more ef?cient operations as employees with shared
skills are grouped together. Can mean that functional groups don’t communicate
well, can decrease ?exibility.

PRODUCT-BASED
STRUCTURE

A product
organisational structure has staff reporting to managers of the company by
product type. Product organisational structures are primarily used by retail
companies that have diverse product lines. For example, a department store may
have a manager of men’s clothing, women’s clothing, jewellery, home-ware, etc.

GEOGRAPHICALLY BASED
STRUCTURE

Geographic
organizational structure allows for each business unit or office to operate as
its own entity based on where it’s located. Many organizations may experience
more or less business opportunity in different places. This can increase or
decrease financial budgets, revenues, the number of employees at the location
and their salaries. An area’s cost of living may also play a factor in the
overall operations at each location.

MATRIX STRUCTURE

In the matrix
structure, individuals are grouped by both function and product. Because the
matrix structure is a combination of other structures, matrix structures can
range from a matrix structure closer to the functional structure to one closer
to the project structure. It is suggested that matrix management is more
dynamic than functional management in that it allows team members to share
information more readily across task boundaries and also allows for
specialisation that can increase depth of knowledge. A disadvantage of the matrix
structure can be the increased complexity in the chain of command. This can
possibly lead to a higher manager to worker ratio and the con?icting loyalties
of employees.

 

 

 

CENTRALISATION

When the
decision-making authority is centred near the top organisation levels, this is
known as centralisation. Centralisation increases consistency in the processes
and procedures that employees use in performing tasks. In this way, it promotes
workplace harmony among workers and reduces the cost of production. Centralisation
is usually helpful when an organisation is in crisis and or faces the risk of
failure.

DECENTRALISATION

Decentralisation is
found when the location of decision-making authority is near lower
organisational levels. With decentralised authority, important decisions are
made by middle-level and supervisory level managers. An advantage in having
decentralised authority is that managers are encouraged to solve their own
problems rather than to buck the decision to a higher level. In addition, decisions
are made more quickly, which increases the organisation’s ?exibility.

Factors which influence individual behaviour in
the workplace

Organisations are
formed by individuals, who have organized in some form to achieve a common
objective. Their behaviour can be affected by both innate and environmental
factors. One of these is personality, which will be different from person to
person. The personalities will differ according to their backgrounds,
temperaments and skills. Another is the racial backgrounds of different people,
which will play a part in determining their values and way of thinking. The
status the workers hold within the organisation will also influence their
behaviour.