Organizational Structure and Culture: Balancing Strengths and Weaknesses

Introduction

The organization’s structure and culture are two essential elements to be addressed. However, there are adequate and inadequate ways in which firms can approach the above notions. Namely, culture and structure can be implemented in a way that becomes a corporate weakness or internal strength. Specifically, employing an incorrect structure that does not align with the size or nature of the company will generate weaknesses similar to implementing an inappropriate culture. On the contrary, selecting an efficient structure and culture will maximize potential success.

Organizational Structure

Selecting an organizational structure that would align with the corporate objectives and characteristics will lead to the generation of internal strength. For example, small organizations have a simple structure, and employees typically exemplify various jobs based on the necessities of the startup (Wheelen et al., 2018). This phenomenon has become an internal strength as the workforce can complete multiple contrasting tasks. However, rigidity implies that a small company would need to outsource various services or hire more people, hence losing more money.

At the same time, corporations are more likely to have divisional structures (Wheelen et al., 2018). Every division consists of multiple individuals with well-defined jobs and hierarchies. However, suppose a big corporation operates on a simple structure, and employees do not have defined roles. In that case, the work process becomes confusing as there would be too many activities and branches to address.

Organizational Culture

The organization’s culture can similarly become a strength or a weakness, depending on its nature. For example, researchers highlight four elements of culture, namely, hierarchy, clan, adhocracy, and market (Assens-Serra et al., 2021). An organization with a hierarchy-based culture yet aims for innovation cannot succeed as employees are stagnant and less likely to be creative. As a result, the culture becomes a weakness. However, the same culture can be an internal strength in the military, where hierarchy is one of the aspects on which the entire system is based. Another element that can be interpreted as both a weakness and a strength is the organizational values implemented in the corporate culture.

An example would be encouraging employees to maintain integrity. This can be approached by informing the workforce about reporting negative behavior and honesty (Graham et al., 2022). However, organizations can turn integrity into a weakness by promoting bashing colleagues and being confrontational.

Conclusion

Both organizational structure and culture can be internal strengths or weaknesses depending on how said notions are employed. Namely, selecting an inappropriate structure that does not consider the organization’s characteristics will generate inconveniences. At the same time, an efficient structure maximizes success by exemplifying a system in which all the organizational processes are interconnected and work collaboratively. The culture, on the other hand, can also correlate with both negative and positive implications. Similarly to structure, it must be implemented based on the corporation’s beliefs, goals, and aspirations.

References

Assens-Serra, J., Boada-Cuerva, M., Serrano-Fernández, M.-J., & Agulló-Tomás, E. (2021). Gaining a better understanding of the types of organizational culture to manage suffering at work. Frontiers in Psychology, 12. Web.

Graham, J. R., Grennan, J., Harvey, C. R., & Rajgopal, S. (2022). Corporate culture: Evidence from the field. Journal of Financial Economics, 146(2), 552–593. Web.

Wheelen, T. L., Hunger, J. D., Hoffman, A. N., & Bamford, C. E. (2018). Concepts in strategic management and business policy: Globalization, innovation, and Sustainability (15th ed.). Pearson.

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StudyCorgi. (2024) 'Organizational Structure and Culture: Balancing Strengths and Weaknesses'. 25 October.

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StudyCorgi. "Organizational Structure and Culture: Balancing Strengths and Weaknesses." October 25, 2024. https://studycorgi.com/organizational-structure-and-culture-balancing-strengths-and-weaknesses/.

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StudyCorgi. 2024. "Organizational Structure and Culture: Balancing Strengths and Weaknesses." October 25, 2024. https://studycorgi.com/organizational-structure-and-culture-balancing-strengths-and-weaknesses/.

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