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Understanding the Relationship between Organizational Structure and Culture

Understand the relationship between organisational structure and culture.


Understand different approaches to management and leadership.


Understand ways of using motivational theories in organisations.

Understand mechanisms for developing effective teamwork in organisations.

The organization structure depends on the viewpoint of the head of the organization and its employees manifest the culture of the organization. The owner of the business maintains the different approach to management and leadership as it is something that cannot be changed with the passing time (Saenz et al. 2015). The ways of using motivational theories in an organization should be implemented as it fosters the growth of the company. The mechanism for developing effective teamwork in the organization helps the employees to work efficiently.

This particular study firmly focuses on analyzing the relationship between various organization structure and culture in terms of starting new organization in business industry. This study also executes different approaches of management and leadership style as well as strategies. Moreover, this study also describes the motivational theories that help in motivating employees and developing teamwork within the organizational workplace.

Comparison and Contrast of Different Organizational Cultures and Structures

In terms of developing new organization several organizational structure must be considered such as

Technology: Harper (2015) opined that technology is the combination of knowledge resources and techniques that helps in creating products or services of the firm. The key elements included in the structure are departmentalization (on what points the grouping of jobs will be done), work specialization (activities subdivided into separate jobs), decentralization and centralization (source of making decision authority), formalization (it is the degree of making regulations and rules to assist employees and managers).

Strategy: This allows the organization in positioning a competitive environment and shaping the design of the firm. Moreover, it also helps in developing the organizational uniqueness regarding selling.

Environment: In terms of running successful business, need to receive inputs from the environment in the place of business operation and sell their outputs within the environment.

Scale: majority of the larger organizations earn benefits through building economies of scale by involving greater complexity that sophisticated organizational designs.

Apart from that, there are several merits of organizational structures that is showing in the table –

Functional Structure

Product Structure

Geographic Structure

Vertical Specialization

  • Deliver clear services with the aligned skills and training of individuals
  • Easily explain to customers, employees, suppliers, through problem that are recognized
  • Lead for the growth of sectional interests with the hierarchy and reinforcement
  • People are grouped based on expertise for the large numbers of products or services
  • Support expansion of skills and rapid diversion
  • Incentive and reward structure based on successful achievements of individual product lines
  • Helps in effective decision making for large amount of supply chain methods
  • Provide decentralized approach
  • Help in maintaining personal relationship
  • Provide clear outline of separation of authority and activities
  • Outline the hierarchical ranking

The British management writer, (Charles Handy), classified organizational culture by the power of individual’s roles and functions within an organization. The identification is of four types of corporate culture Zeus, Apollo, Athens and Dionysius and named them after the ancient Greek gods (Russo et al. 2013). In terms of developing new business, eight cultural characteristic have to maintain –

  • Simplicity according to the possibility
  • Core Competency
  • Bias for action
  • Entrepreneurship and Autonomy
  • Displaying Corporate Value (Publishing Annual Report)
  • Loose tight properties
  • People Productivity (Providing Rewards)
  • Staying close to customer

Comparison and Contrast of Different Organizational Cultures and Structures

Apart from that, there are several core corporate cultural models in the business industry such as –

Models of Organizational Culture

Figure 1: Models of Organizational Culture

(Source: French and Rayner 2008, pp- 209)

The link through an organization's culture and structure can impact the appraisal of the business in many ways. The structures, as well as culture, are reciprocal of each other and functions parallel (Cummings and Worley 2014). The culture cannot be imposed people will have to follow it or build it with their will on anyone.

 Relationship between Organizational Structure and Culture

Figure 2: Relationship between Organizational Structure and Culture

(Source: Pless, Maak and Waldman 2012, pp- 63)

The boundary between one organization and other is defines by different culture, improves the stability of the organization and conveys a sense of knowingness for its members. Due to all the bounds and limitations, which affect the employee or an individual the performance of the business somehow, deflects in some form or other. Hence, for a successful business, emphasis should be kept in the culture of the organization and regular checks should be done to maintain the code of conduct of every employee.

The reasons, which influence behavior of individuals at work, are organization structure, organization culture, personality, perception, dedication, incentives and working conditions (Robbins et al. 2013). If all these factors are followed appropriately by every individual in the organization, then the business will benefit and will gain profits whereas will keep every individual happy with the working conditions. The employees, as well as the chief of the organization, maintain the organization culture.

Factors

Details

Attention

  • Way of learning information helps in reducing demand of attention

Memory

  • Things and method impose information access

Logical Reasoning

  • Decision making severe implications

Perception

  • Neglecting misunderstand will help in influencing people at workplace


Table 1: Factors that influence individuals at work

(Source: Cummings and Worley 2014, pp-512)

The perception should be made by every individual but for the betterment of the organization and in productive manner and grapevine should not be encouraged (Cichocki and Irwin 2014). The incentive is a way to make employees work with efficiency and for extra hours to complete the task. The working condition of any organization depends on its structure and the size of the business.

Comparison of the Effectiveness of different leadership styles in different organizations

The leadership skill is a valid attribute in the management of organizations. There is no one leadership style, which can be implemented in every situation. The leadership style has to be applied according to the positions in business (Swaen et al. 2013). The styles of leadership differ and there are few styles of leadership like Country Club leadership in which production is low, but people are high, produce or perish leadership in it the production is high and people is low, impoverished leadership in which both production and people are low.

Description of Factors that influence individual behaviors at work

Autocratic Style: This type of leaders makes the decision without taking any reference from others. The effectiveness of country club leadership is that it will always keep the employees happy as production is low in it and there is not too much work. In addition, this type of leaders also creates alienation and de-motivation. However, Bardhan, Krishnan and Lin (2013) opined that autocratic leadership style is more valuable where decision need to be made quickly and decisively. 

Democratic Leadership Style: The impoverished leadership is one in which production is low so there is not too much work to do that is why people is also low. In the middle-of-the-road leadership the production is medium hence the people are also medium. Lastly, the team leadership is one in which production is high as well as people is also high.

Autocratic Style

Democratic Style

Delegative Style (Laissez-Faire)

  • Make decision without reference
  • Valuable in quick decision making
  • Alienation and de-motivate to staff
  • Encourage decision making
  • Emphasized the organization
  • Delay in decision making
  • Make creative ideas
  • Make coordination
  • Realise effective team work


Table 2: Comparison of Different Leadership styles

(Source: Lazaroiu 2015)

Delegative Leadership style (Laissez-Faire): The key quote of this style is the “Let it be”. These types of leaders are responsible for all shared information to all. Where creative ideas are required, this type of leads are played crucial role. In the produce or perish leadership the production is high so it will not keep the people much happy because of the workload.

Scientific Management: According to Taylor (2004), managers within the organization need to be trained. Therefore, this theory will help the organization in providing appropriate training to their higher-level management staffs. The theory, which is associated with organization, is necessary to practice as it fosters the behavior and nature of an organization, which helps in the practice of management. If an organization maintains its principles for behavior and nature, then the employees have a good etiquette.

Classical Management Theories: The management function includes roles like planning, organizing, commanding, coordinating and controlling (Haslam et al. 2014). If correct organization theories are practiced, then the management can be practiced properly.

Weber’s Theory of Bureaucracy: The nature of the organization has to be understood to practice the management properly by the Directorate. The objective of the organization is to make the management understand the nature and behavior of the organization. The management should be taught or given classes for practicing organizational behavior.

Faylor’s Principe of Management: The proper practice of management can only be conducted if the organizational behavior, nature of the organization can be well understood by the Directorate. If you are interested in changing your leadership style and organizational theory, then a meeting should be conducted for us to discuss further. Therefore, the major principles are –

  • Unity of Command
  • Organizational Hierarchy
  • Division of Labor
  • Esprit de corps
  • Discipline

Understanding different approaches to management and leadership

Bureaucratic Approach: The bureaucratic approach is followed by most of the organizations as it is not bound to use any particular approach rather it functions based on the environment of the organization and hence it is used the most (Pless et al. 2012).

Scientific Approach: The scientific management is of not much use as it is quite complex and most organizations does not favor it.

Time Study

Separation Planning

  • Scientific recruitment
  • Training
  • Analysis of Job
  • Financial Initiatives
  • Standardization

Source: (Taylor, 2014)

Administrative Approach: There are some principles in administrative approach such as discipline at work, remuneration, equity, initiatives, scalar chain, unity of direction.

Discussion of the impact of different leadership style on motivational in organization

Autocratic Leadership: The effects of motivation that different leadership styles have cannot be measured because it is not seen rather it is felt. The motivation a person can get depends on the situations and circumstances as it is something which needs to be stimulated, impelled, moved and induced by an individual (Pinder 2014). The motivation depends on what motivates a person, and it differentiates from one person to another.

Democratic Leadership: The motivation is defined as a reason to put forth your best forward. The motivation depends on a person's needs, and it ceases with the fulfillment of need and motivates behavior. The needs of individuals are different from persons to persons and are motivated by different things.

Laissez-Faire Leadership: The leadership styles are different and motivate person differently. The motivation is vital for productivity, increased performance, and achievements (Strom et al. 2014). The motivation has different effects on each, as not all persons get motivate by same needs. The motives of making work done in exchange for reward works for a short term as it is not fixed. In the long run, to sustain human motivation, there are many intangible factors which not necessarily depend on rewards.

The various theories of motivation, which can be discriminated, based on its invention can be implemented in workplace. The types of motivational theories are Abraham Maslow – The Hierarchy of Needs theory, Douglas McGregor – Theory X / Theory Y and Herzberg – Motivator-Hygiene Theory, Vroom and Expectancy theories, Maccoby, McCrae, and Costa –personality dimensions, etc. (Miner 2015).These are the three motivational theories which are practiced the most by most of the organizations.

Douglas McGregor – Theory X / Theory Y: It is made on the basics that intrinsic motivation is better than extrinsic motivation. It means to get great results people should be interested in doing work. The theory x / theory y states if it is considered that in theory x it is assumed that most of the worker is lazy, will do very little work possible and dislikes work. The theory y states that assumption should be made if average worker is not lazy, the job itself will decide if the worker likes the job and wants to do a good job (Munro et al. 2014).

Comparison of the Effectiveness of different leadership styles in different organizations

The Herzberg employee motivator-hygiene theory: It sates the relationship between hygiene needs, job satisfaction and motivator needs. It implies that when the motivator needs are done then workers will be satisfied; when hygiene needs are done workers will not be dissatisfied.

Motivator Factors

Hygiene Factors

Work itself

Responsibility

Promotion

Achievement

Benefits and pay

Company policy and administration

Relationship with co-workers

Job security


Abraham Maslow – The Hierarchy of Needs theory:

Options

Details

Self Actualization

This theory allows the leaders in organizational aspect to motivate their employees by providing opportunities of judgment.

Esteem

Providing rewards for achievement, decrease the dominance, build self respect, etc

Social

Build eco-friendly environment within the workplace. Create group of individuals

Safety

Provide self protection from elements such as health act.

Physiological

Employee feel free during the working hour

The theory is useful for managers as it improves performance appraisal of employees. In the realm of management, motivation is an important function as it is vital for productivity, achievement and increased performance (Barrick et al. 2013). The needs of motivation differ from one individual to another (Lazaroiu 2015).

Process of motivation

Process of motivation

Figure 3: Process of motivation

(Source: Ben-Ner 2013, pp- 91)

Treat staff well: The staff deserves a proper treatment.

Think like a winner: The winner qualities should be implemented in business.

Recognize the differences: The difference between motivations should be understood.

Set realistic goals: The goals set should be real and should be achieved.

Nature of groups and groups behavior within organizations

The term group is used for types of people who think themselves to be a group. There are certain distinctive attributes in groups, which is not present in a crowd (Salas et al. 2015). The nature of groups can be identified if it has a certain sense of identity, loyalty towards the group, purpose of the group and leadership of the group.

Nature of groups: There are different types of group formation in an organization to achieve its specific results. There are three types of views in a group the normative view which shows how to organize a group and carry out activities, the second is group dynamics which has a set of roles like brainstorming, role play and the third is group dynamics from the viewpoint of internal organization members (Russo et al. 2013).

Dynamics of group formation: The formation of group depends on the type of groups. The official group is constructed to cater specific goals. The management builds it for a particular purpose, and they are task oriented.

Formal group:  In the formal group, the management creates a group based on the work type and for particular goal (Turner 2014). It is constructed for the appropriate coordination of work. Individuals depending on their likings and shared interests create the informal group.

Informal group: The informal groups include colleagues who eat lunch together, people in a network who get together to exchange information and does not allow others to join them. The purpose of an informal group is not concerned with any task rather; it is dependent on an individual and personal satisfaction.

The five stage model: It shows the forming of group according to the model.

Forming: It is the initial stage of group development.

Storming: In this disagreement among membership may arise.

Norming: In it the members develop close relationship.

Performing: It is the stage where members perform.

Adjourning: It is the last stage for temporary groups.

The factors that promote effective teamwork are that the organizations provide team based structures to enhance the productivity (West 2012). The effective team work characteristics are:

Tailored to the organization: Every organization needs a tailored approach to customized the culture and align it with the strategies in business as it is different.

Flexible: The off the shelf approach can be utilized in a variety of models and approaches and integrate it with the existing development and training efforts.

 Practical and relevant: To work with the team members it is important to keep everything simple so that it can be implemented immediately in real life situation.

Competency-based: To distinguish between the high competency and average the training of the team members and leaders should be conducted and if necessary a competency model for team can be developed .

Customer focused: It is important to take customer feedback and implement it as far as possible; the feedback should be both internal and external (French and Rayner 2013). 

Transfer of technology: The dependence on any consultancy is not good so the companies which have done most of the works themselves have shown more profit.

The technological effect is huge in team functioning as it manifests the promotion of technology through team functioning. Over the last few decades new technology has been injected in the workplace at an increasing rate (Bardhan 2013). The focus will be on information technology, its implementations, its pitfalls and future.

Information technology – New developments in IT has led to a mobile work place. Due to the advancement of technology an individual can take his office anywhere he wants on the go as cellular phones allow to reach anywhere. New technology has opened the door for employees who want to move away from traditional working.

Implementations: The implementation of technology is in every company as it is gaining popularity as new technologies has given business access (Lazaroiu 2015). As technology has become an important part in every one’s life new technologies has been in the rise and this has prospered the implementation of information technology.

Pitfalls – It is the considerations for the areas of concern in technology implementation. The prime concern is about security as the use of technology and its advancement brings securities threats (Cummings and Worley 2014). The security of physical devices is a concern and the access to unauthorized data access is also an issue in many organizations.

Conclusion

From analyzing all the facts, it can be concluded that understanding the relationship between organizational structure and culture is necessary as it manifests an organization. The Understanding of different approaches to management and leadership should be made so that an organization keeps command of its employees. The understanding of ways of using motivational theories in organization evaluates the overall performance of every individual. The understanding of mechanisms for developing effective teamwork in organizations helps in the better performance of the organization. All these factors are included in the success rate of any organization, as these constitute the building blocks of success.

References

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Barrick, M.R., Mount, M.K. and Li, N., 2013. The theory of purposeful work behavior: The role of personality, higher-order goals, and job characteristics.Academy of Management Review, 38(1), pp.132-153.

Ben-Ner, A., 2013. Preferences and organization structure: Toward behavioral economics micro-foundations of organizational analysis. The Journal of Socio-Economics, 46, pp.87-96.

Cichocki, P. and Irwin, C., 2014. Organization design: A guide to building effective organizations. Kogan Page Publishers.

Cummings, T. and Worley, C., 2014. Organization development and change. Cengage learning.

de Guinea, A.O., Webster, J. and Staples, D.S., 2012. A meta-analysis of the consequences of virtualness on team functioning. Information & Management, 49(6), pp.301-308.

Du, S., Swaen, V., Lindgreen, A. and Sen, S., 2013. The roles of leadership styles in corporate social responsibility. Journal of business ethics, 114(1), pp.155-169.

French, R. and Rayner, C., Rees, G.–Rumbles, S. 2012. Organizational Behaviour.

Harper, C., 2015. Organizations: Structures, processes and outcomes. Routledge.

Haslam, S.A., van Knippenberg, D., Platow, M.J. and Ellemers, N. eds., 2014. Social identity at work: Developing theory for organizational practice. Psychology Press.

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West, M.A., 2012. Effective teamwork: Practical lessons from organizational research. John Wiley & Sons.

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