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