: Critical Analysis of Organisational Structure and Culture in Relation to Business Performance

5085 Words Apr 29th, 2008 21 Pages
Introduction

From the analysis of the Phrase “Provided the underlying culture is strong, a bad patch will sooner or later end. Properly regarded, setbacks can be instructive. Enduring cultures regard them not as calamities but challenges, and absorb their lessons…..” We can hypothesise that ‘underlying culture ‘refers to organisational culture; ‘bad patch’ refers to a period where business performance is low or employees are moving away form the organisational culture resulting in low business performance; ‘Properly regarded, setbacks can be instructive’ means that the organisation can learn from their mistakes and overcoming obstacles, and ‘Enduring cultures’ are cultures that are long lasting in the organisation. Substituting
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The core layer of culture relates to the deepest assumptions i.e. belief in quality, loyalty, freedom to make decisions and mistakes and goals whether ideological, formal or sheared personal goals.
Business performance is the organisation’s ability to attain its finical goals by using its resources in an efficient and effective manner in order to meet its primary mandate which is to increase profits. Now that we understand these elements lets us look at their varying types and what factors influence an organisation to adopt different types of structures and cultures.

Theoretical framework

Structure exists to bring order to organisations; the fundamental nature of structure is the division of work among employee or functional departments and the coordination of their activities. There are factors that influence an organisation’s structure namely its size, as size increases the more complex division and sub division becomes, subsequently difficulty in control. Coordinating and communication increases as increase in layers have to be formed to regulate manager’s span of control i.e. the amount of subordinates one can control effectively. Span of control is proportional to the individual’s skill, nature of tasks assigned and level of technology available. The nature of work of the organisation will determine how tasks will be assigned and divided and determine how many functional areas are required.

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