Organizational culture is a reflective view of the inner workings of an organization. This culture reflects hierarchical arrangements as it pertains to the lines of authority, rights and obligations, duties, and communication processes. Organizational structure establishes the manner in which power and roles are coordinated and controlled amongst the varying levels of management. The structure of an organization is dependent upon their goals, objectives, and strategy. Determining organizational structure best suited for an organization is generally found within the six key elements of organizational structure and choosing those to implement those best suited for the organization. The six key elements include:
…show more content…
5) Centralization and Decentralization – Centralization refers to the process in which decision making is limited. For example, the power of decision-making is at the top level for critical decisions with middle and lower management used for the implementation process of said decisions. Decentralization works in a manner in which there is a delegation of authority at all levels within the organization with top management responsible for major decisions.
6) Formalization – This relates to the degree jobs will be standardized within the organization. When there is a higher degree of formalization, it requires more procedures, rules, as well job descriptions. With a formalized structure it lessens the chance of an employee not knowing what, when, or how their job is to be performed. A lower level of formalization is less restricted, but requires employees that can work with little supervision (Robbins & Coulter, 2014).
Having a through understanding of the six elements of organizational culture, it allowed for the investigation into the organizational structures used within Amazon’s organization. Through this investigation it was discovered Amazon employs aspects from each of the six elements. What is interesting is to find their organizational structure has never changed throughout the company’s history. The philosophy of Jeff Bezos, founder and CEO of Amazon can be surmised as people create a company