Understand the Relationship Between Organizational Structure and Culture.
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 goals’. It is characterized by planned division of responsibility and a well-defined structure of authority and communication.
‘An informal organization is one which loosely structured, flexible and spontaneous, fluctuating with its individual membership’. Examples of an informal organization are colleagues who tend to lunch together.
Organizational structure: There are many types of organisational structures exist. Following are the common types that include their advantages and disadvantages:
A. Geographical organisation: In a structure of geographical, regional or territorial departmentation, some authority is retaining at head office, but day to day operations are handled on a territorial basis. Example: northern region, western region.
Advantage:
i. There is local decision-making. ii. It may be cheaper to establish local factories or office.
Disadvantage:
i. Duplication and possible loss of economies of scale might arise. ii. Inconsistency in stander may develop from one area to another.
B. Functional organization: functional organization involves grouping together people who perform similar tasks or use similar technology or materials. Primary functions in a manufacturing company might be production, sales, finance
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 goals’. It is characterized by planned division of responsibility and a well-defined structure of authority and communication.
‘An informal organization is one which loosely structured, flexible and spontaneous, fluctuating with its individual membership’. Examples of an informal organization are colleagues who tend to lunch together.
Organizational structure: There are many types of organisational structures exist. Following are the common types that include their advantages and disadvantages:
A. Geographical organisation: In a structure of geographical, regional or territorial departmentation, some authority is retaining at head office, but day to day operations are handled on a territorial basis. Example: northern region, western region.
Advantage:
i. There is local decision-making. ii. It may be cheaper to establish local factories or office.
Disadvantage:
i. Duplication and possible loss of economies of scale might arise. ii. Inconsistency in stander may develop from one area to another.
B. Functional organization: functional organization involves grouping together people who perform similar tasks or use similar technology or materials. Primary functions in a manufacturing company might be production, sales, finance
Bibliography: Reference: 1. HNC, HND BTEC Business Course Book, Organization behavior, Unit-3, first edition September 2000, publishing BPP, ISBN 0 7517 70337.