Culture And Organizational Structure In The Lincoln Electric Company

Decent Essays
Culture and Organizational Structure

How does an organizational structure reflect or reinforce its culture?

As seen in the Lincoln Electric case the organizational culture and organizational structure are directly linked. The structure of the company which was very flat; managers were not ever placed above lower level staff and communication lines were direct and clear. This structure shaped the companies culture and it became extremely successful.

If management and leaders of a company are committed to structures, norms and principles, staff are more likely also act in a way that will create a positive company culture. Organizational structure can affect the company's culture through its effect on communication. Depending on how
…show more content…
The company culture shapes the shapes behavior within a company. Negative behaviors stemming from a negative culture can be detrimental to a company. For example, a very informal company culture may lead to staff losing respect for systems, processes and even superiors which dismantles organizational structure. A poor company culture can also lead to unethical behavior which in turn may lead to a bad reputation. In addition, the right culture can allow a company to execute its strategy whereas the wrong culture can hinder its …show more content…
Unrelated diversification is a "corporate level strategy whereby firms own unrelated businesses and attempt to increase their value through an internal capital market, the use of general organizational competencies or both". (Hill, Schilling, Jones, 2017). . Additionally, companies that pursue this strategy do not have intentions to leverage their competencies between business unites or to share resources other than cash or overall businesses competencies. A good example of unrelated diversification is the Virgin Atlantic Company. This company started in the record/music industry but saw potential in other areas such as the airline industries and used their competency of good customer service and their available cash to invest into a completely different industry. On the other hand, related diversification is when a company expands into a new industry that is related to the company's existing industry or operations or part of its value-chain. A company may choose this form of diversification when they want to benefit from transferring and leveraging competencies, sharing resources, and bundling products. A company may also utilize this strategy when they wish to not only use their general competencies but their distinct competencies across all of its divisions. A good example of this is PepsiCo which started off producing

Related Documents

  • Great Essays

    Globoforce Case Study

    • 1451 Words
    • 6 Pages

    Organizational culture and values set by the top management have considerable impact across the entire organization. It has to do with the leadership style used in the organization. The leaders try to transmit the values among the employees and other departments of the organization. When values of Globoforce are spread among the company employees they become more integrated and coordination among various departments enhances which result in better productivity and effectiveness. The values at the company decides the work pattern of the employees, their freedom in doing work and expressing views in the company meeting and all other daily chores needed to be carried in the…

    • 1451 Words
    • 6 Pages
    Great Essays
  • Improved Essays

    Organizational culture, or corporate culture, is important to HR because it determines many factors within human resources management. Organizational culture is the “amalgamation of values, vision, mission, and the day-to-day aspects of communication, interaction, and operational goals that create the organizational atmosphere that pervades the way people work” (Miller, 2012). Corporate culture is defined as “the collection of beliefs, expectations and values learned and shared by corporation’s members and transmitted from one generation of employees to another” (Hunger & Wheelen, 2011). This culture defines how policies and procedures are established, how supervisors and managers manage their people and how the general atmosphere of the organization is perceived. As with a well-structured organization, if the “culture is compatible with the…

    • 1152 Words
    • 5 Pages
    Improved Essays
  • Decent Essays

    The culture of the organization helps the company define how to operate both inside and outside of the organization. General Motors is an example of an organization that…

    • 204 Words
    • 1 Pages
    Decent Essays
  • Decent Essays

    Industry cultures are formed through a lot of different things. Multiple things affect workplace culture. A few of them are leadership, management, policies, values, vision, and work environment. The way the leaders of the company interact with the employees, how they handle things, and make their decisions. How the company is managed, goals and objectives, and how they interact and involve their employees in everything.…

    • 295 Words
    • 2 Pages
    Decent Essays
  • Decent Essays

    Gfs Corporate Culture

    • 222 Words
    • 1 Pages

    Corporate culture is an important part of business often being the influence of the employees. A good company culture can motivate and boost individual’s moral when the culture matches their own beliefs. Working for Gordon Food Service (GFS) I was told to follow a servant leadership approach in everything we did. I was in charge of training our employees on customer approach.…

    • 222 Words
    • 1 Pages
    Decent Essays
  • Improved Essays

    “The first component of structure is governance-some person or groups have to make the decisions within the organization” (Organizational Structure: An Overview, 2014). Another component of structure is having rules and guidelines specifying how the organization is managed. Along with organizational structure and governance organizational culture holds its importance within an organization as well. Ultimately, the culture is the temperament of the organization. “Culture is comprised of the assumptions, values, norms and tangible signs of organizations members and their behaviors” (McNamara, n.d.).…

    • 976 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    An organizations' culture is its values and behaviors that contribute to the unique environment of the group. Organizational culture includes an organization's innovations, attention to detail, outcome orientation, people orientation, team orientation, aggressiveness, and stability (Robbins and Judge, 2016). Within the organization, the dominant culture indicates the group's core values held by the majority members (Robbins and Judge, 2006). Culture can further define the rules of the game within an organization or create the climate of a group. Corporations such as Chic-fil-A have achieved tremendous success by any business standard, and have done so by creatine conceptual pillars such as purpose, mission, and values that have mapped…

    • 498 Words
    • 2 Pages
    Improved Essays
  • Improved Essays

    According to Anderson (2015), in a book researched by Senge (1990) “culture is not just composed of the beliefs that people have about the organization, but ways that they behave.” (p. 36) The Company would thrive from the learning culture of each worker being more inclusive with each other departments. There needs to be more learned behavior as a team and the employees need to think together as one. One example I found was case study by Todd Campbell titled on Management and Employee Failure at a now Extinct Department Store Circuit City.…

    • 1907 Words
    • 8 Pages
    Improved Essays
  • Improved Essays

    Organizational culture is something that is a big part of every company, and it can play a big role in their success. Organizational culture is “the shared values, principles, traditions, and ways of doing things that influence the way organizational members act” (Robbins, DeCenzo & Coulter, 2015, p. 44). Organizational culture can affect anything and anyone inside an organization. There are 7 dimensions of organizational culture, and they include things like attention to detail, outcome orientation, people orientation, team orientation, aggressiveness, stability, and innovation and risk taking (p. 45). These are the key things to success within an organization.…

    • 434 Words
    • 2 Pages
    Improved Essays
  • Improved Essays

    Creating a Team Building Culture Introduction Culture in an organization or team is the unique characteristic of a group of individuals which allows them to cohesively work together in order to accomplish a common goal (Burke, 2014). Team culture is how a team behaves, its traits, its values and its norms. A team's traits, values and norms are the foundation for its culture. Organizations and teams can naturally develop a team culture, which can have good or bad results.…

    • 1716 Words
    • 7 Pages
    Improved Essays
  • Improved Essays

    People, who are motivated, tend to work harder to reach their goals. Disbelieving the processes within the company can be dangerous, because employees who feel obligated to abide to the organizational culture, work simply because of the fear of being unemployed, instead of in hopes of group achievements. “For example, if a company is in the high-tech industry, having a culture that encourages innovativeness and adaptability will support its performance. However, if a company in the same industry has a culture characterized by stability, a high respect for tradition, and a strong preference for upholding rules and procedures, the company may suffer because of its culture.” (Carpenter, Taylor, Erdogan, 2009, p.185).…

    • 821 Words
    • 4 Pages
    Improved Essays
  • Superior Essays

    As previously mentioned, in a strong organizational culture, the employees will have the same sets of shared values such as ideas on how a particular organization should operate. Peters and Waterman (1982) who strongly influenced this view argued that the top companies were the ones characterised by values to which its employees were strongly committed. Many researchers and consultants assumed that successful cultures have employees with similar basic assumptions and values (White, 1988). Evidence is limited to few studies, Calori & Sarnin (1991) and Denison (1990) stated a relationship between organizational culture and performance. However, Brown (1998),…

    • 2199 Words
    • 9 Pages
    Superior Essays
  • Improved Essays

    Organizational culture is defined by the set of shared values and practices of an organization. Instead of a mandated doctrine, organizational culture is better described as an outcome of collective behavior, which cannot be dictated by leaders outright. However, leaders are capable of shaping the way employees think and behave and this paper will discuss how leaders can influence organizational culture in the Asian context. Organizational culture plays a great part in an employee’s overall experience at the company and can be developed as a competitive edge for the company.…

    • 1000 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    However, a key element, which forms a basic base that leads to superior performance, is a strong organisational culture. Most successful managers suggest that strong culture plays an important role in organisational performance. An organisation achieves its objectives mainly due to a strong culture shared among employees as well as the top management. In the writer’s point of view, strong culture has positive impacts on the organisation because when employees identify, accept, appreciate and commit to that culture, they tend to work more sufficiently and effectively to attain organisational goals. According to Shahzad, Luqman, Khan and Shabbir (2012, p.981), strong culture is considered as a force in order to enhance the performance, motivation, and dedication of the employees.…

    • 1139 Words
    • 5 Pages
    Improved Essays
  • Superior Essays

    Organisational culture underlying behaviours are belief, customs, traditions and values that the organisation operating in. In an innovation point of view, the corporate or organisation should consider culture while managing change perspective. The culture of an organisation can be both as input or output. When organisation going for significant change in terms of innovation in their business by having positive and aligned culture would be benefit organisation in many ways. As a result, it will create high level of productivity and employee performance.…

    • 1677 Words
    • 7 Pages
    Superior Essays