The Influence of Organisational Structure on Organisational Culture
The success or failure of an organisation can often be attributed to the sum of their parts such as staff, profit, products, strategy, technology, environment, structure and culture. These parts or factors can directly contribute to the strengths or weaknesses of an organisation and they are all interrelated. This essay will examine organisational structure and organisational culture and the influence mechanistic and organic structures have on organisational culture.
Organisational structure, as defined by Hodge, Anthony & Gales (1996), is “the sum total of the way in which an organisation divides it’s labour into distinct tasks and then coordinates them” (p.32). It is a set of structural elements used to manage the total organisation (Davidson, Simon, Woods & Griffin, 2009) and it defines work tasks and processes and define the skills required to perform the required work tasks and processes helping the organisation to meet its goals and objectives (Mintzberg, 1979).
As well as defining the division of labour, an organisational structure outlines how authority is distributed amongst staff, departments and divisions. (Hill, Jones, Galvin & Haidar, 2007). There are two primary formats used to distribute authority across an organisation; decentralisation, where the authority is delegated to middle and lower levels managers; and centralisation, where authority is retained by higher level managers. In a decentralised organisation managers are located at different levels of the organisational structure, sharing responsibility for decisions and ensuring tasks are achieved in accordance with business goals or objectives. In a centralised organisation final authority, decision-making and responsibility of the outcomes of the business ultimately lies with the head of the company, such as a chief executive officer or a president (Davidson, Simon, Woods & Griffin, 2009).
Organisational structures can be configured in many different designs. Five typical corporate
Organisational structure, as defined by Hodge, Anthony & Gales (1996), is “the sum total of the way in which an organisation divides it’s labour into distinct tasks and then coordinates them” (p.32). It is a set of structural elements used to manage the total organisation (Davidson, Simon, Woods & Griffin, 2009) and it defines work tasks and processes and define the skills required to perform the required work tasks and processes helping the organisation to meet its goals and objectives (Mintzberg, 1979).
As well as defining the division of labour, an organisational structure outlines how authority is distributed amongst staff, departments and divisions. (Hill, Jones, Galvin & Haidar, 2007). There are two primary formats used to distribute authority across an organisation; decentralisation, where the authority is delegated to middle and lower levels managers; and centralisation, where authority is retained by higher level managers. In a decentralised organisation managers are located at different levels of the organisational structure, sharing responsibility for decisions and ensuring tasks are achieved in accordance with business goals or objectives. In a centralised organisation final authority, decision-making and responsibility of the outcomes of the business ultimately lies with the head of the company, such as a chief executive officer or a president (Davidson, Simon, Woods & Griffin, 2009).
Organisational structures can be configured in many different designs. Five typical corporate
References: Banner, D.K. & Gagne, E.T. (1995). Designing Effective Organisations: Traditional & Transformational Views Davidson, P., Simon. A., Woods, P. & Griffin, R.W. (2009). Management: Core Concepts and Applications (2nd ed.) Griffin, R.W. (2008). Management. (9th ed.). Boston: Houghton Mifflin Company. Hill, C.W.L