Organizational Structure:
Organizational Structure refers to the system that outlines how certain activities are directed in order to achieve the goals of an organization. It defines roles, responsibilities, authority, communication flow, and the way tasks are coordinated. It is the framework through which an organization operates.
Types of Organizational Structure:
- Simple Structure: A flat structure often used in small businesses with minimal hierarchy, where decision-making is centralized in the hands of a single person or small group.
- Functional Structure: Divides the organization into departments based on functions such as marketing, finance, and production, with clear lines of authority and specialization.
- Multidivisional Structure: The organization is split into semi-autonomous divisions based on products, services, or geographic regions, each having its own resources and management.
- Strategic Business Unit (SBU) Structure: Similar to multidivisional, but each unit operates as an independent business with its own vision, mission, and strategy, while aligning with the corporate goals.
- Holding Company Structure: A parent company owns multiple separate businesses or subsidiaries that operate independently but under centralized financial control.
- Project-Based Structure: Teams are formed to work on specific projects with members from various functions; once the project ends, the team disbands.
- Matrix Structure: Employees report to both functional and project or product managers, enabling efficient resource use but often leading to role conflict.
- Team-Based Structure: The organization is built around self-managed teams that work collaboratively across functions to achieve shared goals.
- Network Structure: Core functions are kept in-house, while non-core activities are outsourced; the organization operates through a network of external relationships.
- Multinational Company (MNC) Structure: Organizes operations across various countries, with regional or country-specific divisions to adapt to local markets while maintaining global coordination.
Organizational Culture:
Organizational culture refers to the shared values, beliefs, attitudes, and practices that shape how members of an organization interact and work together. It also refers to the shared values, beliefs, norms, and practices that shape the behavior and mindset of employees within an organization. It influences how employees interact, make decisions, and approach their work.
Importance of Organizational Culture:
- Promotes unity in the organization
- Increases Employees Motivation
- Enhances Productivity
- Attract and retain talent
- Support Consistent decision making
Types of Organizational culture:
Here’s a brief explanation of the four types of organizational culture and their importance:
- Clan Culture: Focuses on collaboration, employee involvement, and a family-like environment. It is important because it boosts employee morale, loyalty, and teamwork, creating a supportive and inclusive workplace.
- Adhocracy Culture: Emphasizes innovation, creativity, and risk-taking. This culture is vital for organizations that want to stay competitive and adapt quickly to changing environments and market demands.
- Market Culture: Driven by results, competition, and achieving goals. It is important as it pushes organizations to be performance-oriented, increasing productivity and customer satisfaction.
- Hierarchy Culture: Based on structure, control, and efficiency with clear procedures and roles. This culture ensures stability, consistency, and smooth operations, especially in large or regulated
