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Organizational Structure Definition Essay


An organization refers to a group of individuals who have been brought together for a common purpose. In most cases, Organizations are formed for various businesses. All individuals within those organizations are mandated to work towards achieving the goals and objectives set within or by theta specific organization. In business, there are three major types of organizations. These include sole proprietorship, where a business or company is owned and operated by a single owner. Partnership, this organization is owned by two or more people who own various percentages of the business and usually have to consult each other before making significant decisions and corporations a large firm or group of companies which are accredited to act as a single body and are documented by the law.

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An organizational structure refers to the system that outlines how specific actions are directed to fulfill a company’s set objectives. Some of the operations within the system include a set of rules and regulations that all relevant stakeholders have to adhere to and responsibilities outlines for them. The main objective of an organizational structure is to determine how the information within the company flows through the various level. A successful organizational structure is supposed to clearly define each worker’s responsibilities and how it fits in attaining the company’s objectives. These structures enable the organization remains the focus, effective and efficient.

There are various structures utilized by organizations, and they vary depending on the company’s needs and priorities. Some of the significant structures include a centralized structure where decisions flow from the top of the company’s management to the bottom, defining the chain of command and a decentralized structure where information and decision-making power is distributed among various levels of the organization which enables every employee get a sense of personal agency.

There are various types of structures which include flat organizational structure. This structure is usually implemented in organizations that have few employees hence very few management levels which allow for rapid decision-making. The functional structure which is the common in the real world, it is also referred to as bureaucratic structure, this type of organizational structure splits up a company into small groups based on specialization within the workforce. It is usually applied to low or medium business, in large companies; they divide the company to various departments including the sales, marketing or operations for ease in organizational management. Another type of structure is the multidivisional structure which is usually implemented. The structure divided its leadership group based on products, an operation they oversee or projects they manage. That structure is designed such that in the large companies, each department operates as its own company. Flatarchy is another organizational structure which is famous among startups. This structure flattens the chain of command or hierarchy with an organization giving employees a lot of autonomy. Most companies that utilize this structure have a higher rate of implementation. The last structure is the matrix organizational structure. Product organization organizes the company based on products, geographic structure and it is the least used organizational structure as it the most complex and confusing. This structure gets employees matrixed across various superiors, divisions or departments within the company.

Organizational Culture
Organizations culture refers to the system within the organization that shares the assumptions values and beliefs, a policy that governs the behavior, attitudes, actions, and job performance of workers in the company. Organizational cultures defer through companies and also in technique. However, there is four original corporate culture style that defines the various methods exploited in companies or business. The four cultures include clan, adhocracy, hierarchy and market cultures.

Clan culture is usually rooted in collaboration of members of the organization, who view themselves as part of an extended family with all parties actively involved this kind of culture promotes mentorship from the leaders, and the organization is typically bound by commitment, the loyalty of the employees and traditions set. That style of organizational culture places significant emphasis on teamwork, transparent, effective and efficient communication and also leads through consensus. This culture establishes respectful relationships among the employees, the customers, the organization’s suppliers and even the consideration of the environment.

The adhocracy culture is grounded on vigor and inventiveness. In this culture, staffs are reinvigorated to takings risks in the organization as leaders also act as innovators and entrepreneurs. The organization thrives on the experimentation of innovative ideas, with the individual employees getting encouraged to exercise ingenuity and freedom in the workforce. New ideas are always welcome, accept and tried out to aid in the progress of the organization.

The market culture is another type of organizational culture significant in any organization. Market culture is founded on the concept of competition to achieve concrete goals. This type of lifestyle is goal oriented and is usually lead by tough and demanding leaders who unite the organization through a common goal which is to succeed and emerge the best among all competitors within the organization market. The main objective 0f this culture is to ensure that the organization ranks first amongst its relevant competitors.

The hierarchy culture is founded on control. It entails a formal working environment with strict procedures and guidelines that must get adhered. Leadership in this culture is usually well organized coordinated and always monitoring the organization progress which great emphasis on consistency, effectiveness, and predictability.

Charles handy created an organizational model based on four corporate cultures. These models are the power culture where only a few people hold power in the company and those get to make the decision and influence the rest on the same. This culture places a lot of emphasis on employee results. Although it’s an influential culture, it may be toxic to the organization. The other is the role culture where the organization is based on rules. These rules control the respective duties and responsibilities of employees. This culture is built on a tall structure with a long command chain. The next culture in the handy model is the task culture which gets formed to solve organizational issues. The effectiveness of this culture depends on the expertise of the designated team. The last culture is the personal culture, where most individuals view themselves as super and unique within the organization. In an organizational setting particular culture refers to individuals working together.

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