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Behaviour

In: Business and Management

Submitted By Tina1993811
Words 1889
Pages 8
1. The relationship between organizational structure and organizational culture
Organizational structure and organizational culture have a dependent relationship with one another. In the business world, management structure determines the behaviors, attitudes, dispositions and ethics that create the work culture. If a company's organizational structure is strictly hierarchical, with decision-making power centralized at the top, the company's culture will likely reflect a lack of freedom and autonomy at the lower levels. If a company's management structure is decentralized, with shared power and authority at all levels, the culture is likely to be more independent, personalized and accountable.

The way a company allocates power and authority determines how employees behave. These choices manifest in a company's organizational structure and organizational culture. Organizational structure is the way a company arranges its management and lines of authority. It determines roles, responsibilities and the flow of information within the company. Work culture results from those decisions.

Most companies use a hierarchical structure that looks like a pyramid on paper. The chief executive or president sits at the very top of the pyramid. His direct reports, usually the vice-presidents, are on a line under him. Their direct reports are on a line under them. The pyramid stretches outward and downward based on the number of levels of management the company needs to operate according to its objectives.

Upper management uses organizational structure to control who has power and authority in the company. For example, if a company president only wants to deal with the most important decisions and wants to leave the day-to-day decision-making to someone else, the organizational structure would have the president on the top line with the vice-president of operations sitting…...

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