Organizational Structure and Culture

Discussion Assignment: Discussion 3

In what ways can a company’s structure and culture be an internal strength or weakness?

Company structure, according to Newstrom (2014) could be conceptualized as the format in which an organization’s business units as well as departments are organized. It therefore follows that there are various ways in which the said organization could be done; i.e. functional organizational structure, divisional organizational structure, simple organizational structure, etc. (Wheelen, Hunger, Hoffman & Bamford, 2018). The organizational structure could be an internal strength in those scenarios whereby it is aligned with the specific operational aspects of the company. For instance, in those instances where there is need to ensure that employees are grouped according to specialization, a functional structure would be most ideal. This is especially the case when as a consequence of the nature of its operations, an organizations is keen to attain departmental competence. On the other hand, a company’s structure could be an internal weakness when it is misaligned with the overall size of the company. This is to say that a startup offering a single product and covering a small market (i.e. with its target market being a single city) would ideally have in place a structure that is different from that of a large multinational with multiple products. Thus, whereas a divisional organizational structure would be ideal for a multinational, it would not be ideal for a small enterprise. This is more so the case given that the smaller company would benefit more by having employees segmented according to job roles (i.e. functional organizational structure), whereas the multinational corporation would be more efficient by having its employees segmented according to markets or products (i.e. divisional organizational structure).

When it comes to company structure, this could be described as the “set of shared values, goals attitudes and practices that characterize an organization” (Black, Bright and Gardener, 2019). As Wheelen, Hunger, Hoffman & Bamford (2018) indicate, organizational structure is typically passed on from one generation of employees to another. Like is the case with organizational structure, organizational culture could either be an internal strength or weakness. For instance, it could be an internal strength when it reflects the nature of the market that the company seeks to serve. For instance, if the company intends to operate in a cosmopolitan setup, then it would be prudent for such an organization to embrace and promote an organizational culture that not only enhances, but also promotes diversity. Conversely, it would be unnecessary for a company to hire employees from diverse backgrounds if it only operates in a closely knit community of people having the same sets of values, ideals and beliefs. Organizational culture could be a weakness in those scenarios whereby it does not mirror the expectations, outlook, and hopes of employees. This is more so the case in those scenarios whereby employees have a low opinion of the culture already in place. For instance, if a majority of the company’s employees happen to be young persons, then a culture that is too rigid and provides little room for meaningful employee interactions and creation of a fun environment could be a major internal weakness.