Understanding organizational structure and culture
Organisational Structure
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Organisational structure refers to the way a business organises its operations and communication. It defines how tasks are coordinated, what roles individuals play, and to whom they report.
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A business's organisational structure may be flat, tall hierarchical, matrix or networked, depending on its size, strategy, goals, and operational environment.
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A flat structure has fewer levels of management, and decisions are often decentralised. It promotes a democratic governance style, with staff members enjoying greater autonomy and flexibility.
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Tall hierarchical structures have multiple levels of management. These companies use a top-down approach, making decisions centrally and disseminating them through the layers.
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A matrix structure allows for reporting lines across different departments. This can encourage more collaboration and checks-and-balances, but it can also cause communication issues if not managed correctly.
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A networked structure consists of different nodes connected by various types of relationships. This setup fosters knowledge sharing and broad collaboration, but without effective systems in place, it can be difficult to maintain order and direction.
Organisational Culture
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Organisational culture refers to the shared values, attitudes, standards, and beliefs that characterise a company and guide the behaviours of its members.
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Values and beliefs are the attitudes the company holds towards its customers, employees, and the broader community. These drive the company’s purpose and the decisions it makes.
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Norms are unspoken rules that members learn and follow. They help to establish acceptable behaviour and work ethics within the organisation.
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Artifacts provide visual support for understanding what a company values. They can include office layout, dress code, and benefits packages.
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Strength of culture can be seen in the consistency of staff behaviour across the organisation. A strong culture usually indicates a company with a well-defined identity.
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Businesses can measure and assess their organisational culture through surveys and metrics mapping employee engagement, satisfaction, and alignment with the company's values.
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The culture of an organisation can greatly influence employee satisfaction and productivity, as well as perceptions of the company in the public eye. Understanding organisational structure and culture is crucial for the effective administration of any business.