Relationship between Organizational Structure and Culture

Relationship between Organizational Structure and Culture Since the organizational structure determines how the roles and responsibilities are allocated and how they will be monitored as well as the flow of communication between different levels and sectors, it is entirely dependent on the organizations goals and how it wants to reach them. In centralized structures all the decision making power is retained at the top level of management and all the other departments are closely monitored and controlled, While in the decentralized structure decision making power is delegated to the lower levels as well to an extent to increase the speed of implementation as well as increase job satisfaction among other things. Organizational structure can be categorized into two different dimensions, vertical and horizontal. The vertical organizational structures have many different levels of authority with individuals in management or supervisory positions having a small or narrow span of control (span of control being the number of subordinates working under an individual) compared to the horizontal structure. A narrow span of control is easier to handle and communicate with. It also requires less management skill then to control a larger number of people like in a wide span of control. Horizontal organizations structures tend to have a wider span of control i.e. many subordinates under one manager or supervisor. Horizontal structures tend to have better communications and are generally cost effective for an organization due to not needing many managers. Types of Organizational Structure Companies tend to organize themselves in different ways according to their needs. Appropriate organizational structure depends upon the unique strategy of the business, its unique customer base, its unique sense of products and services and its management of these considerations as they are dispersed throughout the enterprise (Fontaine, 2007). Some of the major structures are as follows, Functional Structures These are most probably the most common type of organizational structure implemented by companies worldwide. Its popularity is due to it being simple yet effective. In this structure an organizations divides its self into different department (for example, Research and Development, Customer Sales, Human Resource Management, et cetera). People with similar skills are grouped together in their respective departments. Divisional Structures Divisional structures differ from functional structures because it does not belive in grouping people with similar skills into different departments, rather it distributes them across the organization to where ever they might be needed. For example in the divisional structure if a retail outlet has branches in different cities then every city will have a separate customer sales department rather than have a single department for the whole company. Matrix Structures This is somewhat of an amalgam of both Functional and Divisional Structures. It is made up of teams of personnel from different sectors of the organization brought together for a specific project. These teams are usually not permanent but are project specific. This is a highly effective type of structure in most cases. They are usually led by Project Managers who report directly to the head of the organization. An important point to be noted here is that some companies, especially very large companies usually employ different types of structures in different departments rather than a single structure throughout. Organizational Culture Organizational Culture can be defined as the specific collection of values and norms that are shared by people and groups in an organization and that control the way they interact with each other and with  stakeholders  outside the organization.(Hill and Jones, 2001) Culture of an organization is not always easy to explain but it can felt or sensed much more distinctly. Simply put, it is the personality of the company. Hierarchy This type of culture is well defined and stable. It is quite a formal culture which emphasizes on control and authority to keep the organization running smoothly. This type of culture offers security and stability. Market This type of culture is similar to Hierarchy Culture in the sense that it also focuses somewhat on security and stability but it is driven results. It is a very competitive environment to work in and there is very high focus on production. Clan The focus of this type of organizational culture is the employees of the organization. It is a very friendly environment to work in. Loyalty is emphasized and employees are asked to express themselves more openly. There is also a lot of importance given to teamwork. Adhocracy This type of culture emphasizes thinking outside the box. Employees are given a bit of latitude to experiment and to think differently. Creativity is encouraged and appreciated. The atmosphere is dynamic and roles are not always defined. It is quite different from the rest of the organizational cultures. Like organizational structures, it is not necessary that one type of culture will be prevalent throughout an organization. Some companies tend to implement different cultures in different sectors. Pure Control (Hierarchy), Compete (Market), Collaborate (Clan) or Create (Adhocracy) are extremely rare. (Tharp, 2009) Relationship Between Organizational Structure And Culture And Its Effect On The Business To reach their goals effectively organizations always need to have a formal structure. This is important to distribute tasks into different groups to ensure that no two people are working on the same project or task so that we get the most output for our input. Because organizations cannot be run without people, this tends to create different informal structures or environments in the organization which leads to different attitudes, perceptions, behaviors and traits with lots different types of aptitudes. So when employees are supposed to work together on a task in the constraints of a formal structure to reach a certain objective there are certain ways to speak and interact, which in effect forms an organizational culture, where it may be created knowingly or unknowingly by the employees. Organizational culture in some way defines the organizational structure of an organization but the structure also partially defines the culture of an organization. It can also be said that the structure is a framework for the culture to be implemented, while the culture dictates how the company should be structured. So, no matter how big a company, if its culture starts to disintegrate, it is only a matter of time till the structure also follows. Business performance in a Functional Organization structure can be severely affected by the time it takes for the flow of communication through the different levels of the hierarchy making the organization very slow to adhere to the new technology, the political situations, the economy, cultural changes or social factors and legal issues. It generally has a narrow span of control which may cause restrictrictions in individual expression and power which causes job dissatisfaction and de-motivation. The level of motivation employees possess will affect their output affecting business performance. Employees might not understand the bigger scenario and the significance of their individual work. Employees may have a bad perception towards work or because everything is so clearly defined and communication is limited, this could result in an indiffrent nature and attitude even greater affecting employee relations, affecting motivation, resulting in low business performance. On the other hand a Divisional Organizational structure has greater flexibility because of low levels of management. This fast attribute to change makes it competitive, able to adjust to customers wants and needs very fast, giving it better performance. Better communication encourages individual through initiative and power to make decisions giving the feeling of self-freedom, causing highly motivated employees, which affects business in a very good way. This is also dependent upon the individual personalities and networking within the organization. If people donà ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒ ¢Ã¢â‚¬Å¾Ã‚ ¢t work with each other or have a tendency to percept what others say or do differently it could affect employee relations and output affecting business performance. This is why employees need to be selected who will fit the organizational culture so that there will be excellent work relationships. Matrix being the newer organizational structure, it is a bit different from the old thinking of the typical boss; it also redefines the idea of hierarchy or individuals use of organizational power to make decisions but that of expertise power of employees. The task culture is reflected in the matrix organization and there is at times no clear leader within each team. These shifts give rise to employeesà ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒ ¢Ã¢â‚¬Å¾Ã‚ ¢ high job satisfaction because of individual participation and the group identity thus affecting business performance, simply because motivated employees work better.

Business Analysis Part I Mcdonald’s

Business Analysis Part I – McDonald’s Jason Christenson MGT/521 Instructor: James Anderson University of Phoenix Introduction The purpose of doing this business analysis is to decide whether or not to invest in McDonald’s. It is regarded as one of the leading organizations within the global marketplace. As a result, the preceding discussion will provide a SWOT analysis of some key areas, since the identification of an organization’s strengths etc†¦ acts as a critical core element in identifying its competitive advantage and potential as an investment opportunity.Internal and External stakeholders will be identified to help analyze their wants and needs. Strengths McDonalds has established a large and consistent brand. A client can have confidence they can purchase a hamburger and fries in one its locations and across the country receive the same quality of meal at another. It is a leading fast food service based on sales, with a network of over 33,500 restaurants serving burgers and fries in 119 countries to 68 million customers a day. â€Å"Getting To Know Us†, 2012) The company is famous for its commitment to investing in the future of its employees and creating a culture of knowledge, quality service, and cleanliness. â€Å"Since its inception, training at Hamburger University has emphasized consistent restaurant operations procedures, service, quality and cleanliness. It has become the company’s global center of excellence for McDonald’s operations training and leadership development. † (Hamburger University, 2012) Many of McDonald’s top leaders were entry level hire’s that were trained from within and gradually advanced through the ranks.Its family friendly environment with the introduction of large play structures is a major appeal for parent and kids alike. Weaknesses The major weakness facing this company is the continued focus on its health adverse menu. As obesity concerns in t he United States continue with emphasis on getting healthier it will influence people to avoid fast foods in general and opt to cook better foods at home. †Americans are heavier than ever before and, according to an advocacy group, by 2030 more than half the people in the vast majority of states will be obese. (Fox News Latino, 2012) McDonald’s has found it difficult in diversifying and expanding its menu, its failure in offering a pizza is the most recent example. Due to its high employee turnover the amount invested in training could be better utilized. McDonald’s employees are largely represented by high school students that eventually move on after graduating to obtain better employment, which identifies McDonald’s pay structure as not very competitive to keep employee’s long term.Opportunities Though health concerns identify McDonald’s current menu and offerings as a weakness, it could also be recognized as a great opportunity. McDonaldà ¢â‚¬â„¢s as a leader in its industry can dedicate itself to changing the way fast food does business. McDonald’s strives to be responsible in how it responds to the social changes happening within communities. The company continually strives to introduce healthier foods, which have helped add revenues.McDonald’s is recognized as the first in its industry to embrace the initiatives and polices being proposed by the President and upheld by the Supreme Court to help customers make better nutritional choices by requiring restaurants with over 20 locations to list calories on its menu. (Choi, September 12, 2012) McDonald’s move to do this is expected to have its rivals scrambling to do the same. Threats Outside competition will always be an external threat as new food service companies enter the marketplace focusing on more balanced menus.Established companies like Burger King, Taco Bell, and Wendy’s are also constantly striving to introduce new methods of ste aling market share away from each other. The economy continues to be a threat to the fast food industry. Though analyst are not saying we are still in a recession, the truth is companies are still reducing overhead and striving to minimizing risk, making jobs difficult to keep and find. As more people are out of work, it continues to cause households to reduce the amount they spend on fast food, deciding instead to stay home and cook.You also cannot discount the effect documentaries and lawsuits are having on the Industry as a whole. External and Internal Stakeholders Dozens of stakeholders could be identified with time, but this analysis will focus on what it considers the key external and internal stakeholders. Externally, the key stakeholders would be the shareholders and customers, because if there needs are not being met they will pull their money and customers will go to different locations. Based on the stock prices steady climb over the last ten years the indication is both of their needs are being met.Internally, McDonald's Leadership and employees would be the two key stakeholders. These two groups have large interests in the success of the company. Leadership wants to continue and drive quality food at the lowest prices to keep customers loyalties, while employees want the best possible pay and advancement potential. It’s difficult to gauge how well the workforce needs are being met, because the demand for work is so high and their willingness to take the offered pay, instead of being in a position of power to demand higher wages. ConclusionDrive by any McDonald’s and it is easy to see the demand and convenience of their business model is thriving. The SWOT analysis indicates McDonald’s has streamlined and perfected its processes over the years and though the external environmental factors indicate it faces real challenges, its continued appeal shows they are positioned well for the future. The stakeholders continue to show supp ort for the vision and mission McDonald’s has set forth. Reference Getting to Know Us. (2012). Retrieved from http://www. aboutmcdonalds. com/mcd/our_company. html Hamburger University. (2012).Retrieved from http://www. aboutmcdonalds. com/mcd/corporate_careers/training_and_development/ hamburger_university. html Fox News Latino. (September 18, 2012). Obesity in America: Can it Get Much Worse? Yes, Advocacy Group Says  . Retrieved from http://latino. foxnews. com/latino/health/2012/09/18/obesity-in-america-can-it-get-much-worse-yes-advocacy-group-says/#ixzz29UnEJO5I Choi, C. (September 12, 2012). McDonald's new menu item: Calorie counts. Retrieved from http://www. boston. com/lifestyle/food/2012/09/12/mcdonald-new-menu-item-calorie-counts/mMeWvHuN7WyRHTo9CgA3TM/story. html

Case: Lancer Gallery Essay

I. Market Situation Analysis: Lancer galleries are in a very exclusive business. Although their number of competitors has increased over the past few years, the number of competitors is relatively few. This is an advantage. Disadvantages are far more. For one, replicas and fakes are becoming a problem in the market. This poses a threat to Lancer, as many people are only purchasing artifacts for gifts and decorative items, not caring about the historic value, and would rather pay a cheaper price for practical purposes. Second, obtaining artifacts from over seas has proven harder over the past several years because of political situations and other reasons that limit supply. This makes true artifacts harder to get, therefore more expensive. Lastly, because of the recession and economic issues, buying African and South American artifacts is not as common. II. Key Problem Lancer Galleries must decide whether it will be a smart decision, but ethically and financially, to take the deal that was offered to them by a mass merchandise department store. The contract presents the opportunity to add $4 million in additional sales annually, however they would have to triple the amount of replicas they sell. They are torn by the opportunity to make more money, but the potential to ultimately cheapen the value of their business by selling fakes. III. Analysis of Options/Alternative Strategies Lancer Galleries has two options. They can either take the deal proposed by the department store, or they can decline and continue to conduct business as they always have. If they accept the proposal they have the opportunity to increase sales by 4 million annually (depending on consumer acceptance). The company would buy product at 10% below the company’s existing prices and its initial purchase would not be any less than $750,000. However, in order to accomplish this, Lancer Galleries would have to triple the amount of replicas they sell in order to have enough merchandise to sell. By increasing the replica sales, Lancer would be redefining the business, as  they have always prided themselves on finding the most pristine and legitimate artifacts available. Lancer faces the dilemma of more money, versus sacrificing business values. IV.Recommendation I recommend that Lancer does not accept the contract that was proposed. Right now their one advantage is that they don’t have many competitors. This is because they only sell legitimate artifacts and people trust that when they buy from them, they are getting a solid product. While upfront it may seem that they would be making more money, I believe that overall they would be cheapening their business by tripling the amount of replicas sold.

How Bill Gates Is The Man He Is Today - 1333 Words

â€Å"The best way to predict the future is to create it†. This is correctly stated by Peter Drucker, and upheld by all visionaries who created history in the world of technology. The 20th century marked a major turning point in computer advancements that changed the world forever with Microsoft leading the way. Bill Gates, the co founder of Microsoft, always envisioned Microsoft to be a leader in the computer industry, and that is exactly what he accomplished. Today, Microsoft has not only touched and changed the life of the common man, but it has revolutionized the business, medical, production and communication sector of the work world. Through taking risks, and believing in both himself and his product, Bill Gates is the man he is today.†¦show more content†¦Within this environment it is essential for entrepreneurs to be innovative and prepared. Having a strong willed attitude allows an entrepreneur to build on their business strategies because their mind is not d eterred from what they want to accomplish. The element of success behind Gates’ strategy of being strong willed is definitely due to his personal character. When Gates first developed Microsoft he was determined to get his company to the top of the technological industry. Dear Love stated in his book â€Å"His competitive spirit and personal drive to succeed was legendary† (Dear Love, 89). This exemplifies how Bill Gates truly did have the drive to complete tasks at hand, and this was all apart of who he was as a person. Having a strong willed attitude is an essential step to becoming successful in whatever you wish to pursue, just as Bill Gates has displayed in his many years of success. Overall, Gates being head strong and confident about his software is definitely what allowed him to rise to the top. He believed in his product, which made everyone else believe in it too. Determination is a key element to the strategy of anyone who wants to become successful. If you are not determined to succeed you are less likely to do so. Bill Gates was always determined to make his software company into the huge corporation it is now. Dear Love in his book writes, â€Å"Combine business acumen and a highly competitive