This paper examines the relationship between organizational structure and organizational culture. It argues that while structure does influence culture, the connection is not a simple one-to-one correlation. Rather, organizational structure determines the degree to which a leader's personal style shapes the broader culture of the organization. The paper contrasts two ends of a structural spectrum: highly hierarchical organizations, where a single leader sets behavioral norms, and flat or loosely structured organizations, where culture emerges from the collective norms of the workforce. Google is cited as an illustrative example of how a hierarchical structure can still produce a casual culture depending on leadership style.
Organizational structure refers to the way in which an organization is divided and run. Structure encompasses the formal hierarchy of power, including the determination of subordinate and superior positions. In contrast, organizational culture refers to an organization's personality and is composed of less formal aspects such as the organization's values and normative behavior. There is no doubt that structure has an impact on culture; however, the relationship is not a simple correlation between structural type and organizational culture. Instead, organizational structure determines how much an organization's culture will be shaped by a leader's personal style.
On one end of the spectrum, organizations with an extremely hierarchical structure — consisting of employees, levels of managers with progressively more decision-making responsibility, and one person in charge of the organization or department — give greater influence to the person at the top. That person sets the tone for what behavior and values will be considered normal within the department. This effect can be observed when employees emulate the boss's style of dress, work ethic, and approach to interpersonal relationships within the office. As a result, the culture of the organization can range from very formal to very casual, depending entirely on the personal style of the company's leader.
A well-known example is Google, which maintains a hierarchical structure but is led by individuals with a casual personal style. This leadership approach has produced a notably casual and open office culture, illustrating that even within a hierarchy, the character of the person at the top — rather than the structural form itself — drives cultural norms.
"How low-hierarchy organizations develop worker-driven norms"
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