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Coursework essay

  1. 1. Impact of Organisational Structure and Culture of on its PerformanceIntroduction The culture and structure of organisation plays a vital role in the success of theorganisation. It is essential for organisations to compete with the culture and keep on performingwell, but most of the organisations fail and get into trouble. If the organisation is not able tofocus on the problems faced by itsorganisational structure and culture, then they reduce theability of expanding their business. The impact of organisational culture is based on theemployee’sbehaviour. If the employees of organisations are skilled and well, then thatorganisation faces difficulties. Employees are the basic key towards the organisationaleffectiveness, so they need to be trained in a way that they behave well and follow all thepolicies. If employees are not habitual of behaving well, then the internal culture and values ofan organisation can be easily destroyed (Swe and Kleiner, 1998). The organisational structure is the framework, which organisations adopt to perform theirstrategies and objectives. It helps in providing the clear guidelines to employees through whichthey can determine the differences. It also connects the members of organisation together tobuild a team. Moreover, the organisational culture is the practices, which are done by theorganisation. It helps in maintaining the internal strategies in order to achieve organisationalgoals. It also helps management to avoid unethical practices and gives direction to newemployees for improving their behaviour (Nicotera, et al, 2003). The aim of this essay is to understand those factors of organisational culture andstructure, which influence the performance of the organisation. The culture followed by topmanagerseffect on the internal and external environment of the organisation. It focuses on thepolicies and practices which ensure the organisational stability.The objectives of this essay are as follows:
  2. 2.  To identify the practices done by management  The impact of culture over the employees performance  To recognize the consequence of culture over the performance of the organisation  Issues faced by the companyregarding organisational structure  To focus on culture and practices that an organisation needs to follow in order to, improve its performance.Analysis on Organisational Structure and Culture of CompanyFormal and Informal Organisations More than two people come together to form the formal organisational structure. In thissystem, the members work together towards specific goals. There are certain rules, which areessential to follow by managers and employees. The objective and goals are well defined by topmanagement and the members are clearly defined about their duties and responsibilities. Topmanagement creates the formal organisational structure and they use formal channelsforcommunication. The financial benefits are also given to employees. While in informal organisation, management and employees work together and sharetheir ideas. They form a system, which is based on the friendly relationship among managers andsub-ordinates. Social forces form informal organisation and employees are not obligated tofollow the rules and regulations. There are no fixed authority, responsibility and duties given toemployees, and they use informal channel for communication. The corporate culture of Apple is neither to informal or formal. They have transformedtheir traditional organisational hierarchy from tall to very flat. Not only this, but they have alsoallowed employees to dress in a casual way and interact among each other. The employeesworking with Apple are clear about their priorities and value. In order to perform quickly, themembers are performing in a team, which is enhancing the organisational performance (Grady,2009).
  3. 3. Types of Organisational Structures The organisational structure helps in determining the hierarchy and structure of reportingin an organisation. The organisational structure of company differs from another companybecause it is based upon the nature of business. Thus, by following this plan organisations candirect their work in a systematic manner for future success. There are three types of organisational structure:Traditional structure The traditional structure is based on the departments and functional divisions. Employeesfollow the organisational rules and actions. Following are the various types of traditionalstructure: Line structure – In this structure, the approvals and others are from top to bottom as it isforming a line. The decision-making in this structure is easy and informal. The departments arefew, which decentralised the organisations. Functional structure – This type of structure focuses on the functions of individuals,which they are performing in the organisation.Divisional structureProduct structure – This structure organises the employees work on various types of products.Market structure – The market structure groups the employees of the company based on precisemarket for sales.Geographic structure – This structure helps the organisation in working at different places. Ithelps them in following the different regional cultures.
  4. 4. Matrix Structure The matrix structure merges the production and function structures. It combines themtogether to develop an efficient system in organisation. Apple Company is focusing on the creative and innovative people, which help them ingenerating new ideas for carrying out business. They believe that survival of the organisation isbased on how the organisation manages its employees. The high performance of groups andteams enacts in advanced way (Griffin, 2011).Effect of Management Communication Style of Performance The management communication style of Apple Company is ‘Cooperative’. Themanagers and subordinates are connected with each other and maintain a friendly environment.The company is offering training programs to employee for their future effectiveness andefficiency. The top managers encourage the employees at every step. In this way, the employeesare feeling motivated and enhancing their abilities. The management of Apple has formed asignificant association with subordinates, which help them in solving complex problems andadapting new technologies. Hence, the effective management communication style relate in thesuccess of the company.Management Practices and Company Performance Organisational culture is based on the norms, beliefs, assumptions, and values, whichhelp in determining the actions of managements and employees in the organisation. The AppleCompany adopts environmental changes quickly to maintain their internal structure. They aresuccessful in finding new ways to reinvent their existing products into new products. The AppleCompany is following geographical structure system. In this way, they are making the productmanufacturing easy and delivering their products around the world according to the demand ofthat country. This structure helps managers and employees to focus on specific geographicalcustomers and sales target. Hence, the leadership quality in managers also plays an importantrole to maintain the changes and satisfy stockholders, employees and customers (Daft, 2007).
  5. 5. Team and Group Dynamics The performance of organisations is based on the successful teams. It is important tomaintain a proper strategy and focus on interpersonal skills. The teams in Apple Company areworking together in order to achieve their goals. The managers and employees are cooperatingwith each other to solve problems and face challenges.Emotional Climate of Organisation The emotional climate is a concept, which is followed in many fields such as business,management etc. This concept helps the organisation in increasing the performance andproductivity. Apple Company is focusing on adapting new strategies, which is affecting directlyon the performance of the company.Working Culture affect on Performance The working cultures of organisations are based on the traditions, identity and objectives.It differs from one organisation to another. The working culture of Apple Company is informaland innovative. In this way, employees are enjoying their work and adapting new technologieseffectively. It is based on the psychological factor of individuals through which they interactwith others. The managers and employees are working with enthusiasm, which result inimproving the productivity, effectiveness and efficiency (Keyton, 2011).Organisational Culture and Performance The organisational culture is based on the six major factors [1] knowledge [2] procedure[3] leadership [4] rewards [6] formation. The positive relationship among the managers andemployees build trust. Hence, this createsan internal culture, which is based on the groupdecision making, knowledge sharing, easy flow of information and mutual understanding. Thisalso builds the interpersonal trust among members of the company, which influence theperformance (AL-Alawi, et al, 2007). Hence, Apple Company is successful and growing fasterdue to its effective organisational culture.
  6. 6. Effect of Organisational Culture on Performance of Apple As the organisational culture of Apple is based on the individual who work hard for thesuccess, hence, this made them react more quickly towards change. The organisational cultureeffects directly on the company’s performance. It is important for companies to adapt theenvironmental change for the future sustainability. The culture of theorganisation shouldorganise the procedures, plan and focus on long-term orientation (Eccles, 2011).Impact of Departmentalisation on Organisational Performance Departmentalisation is the key factor in organisational structure. It has connected themembers together in an organisation and forming departments. The managers identify the workand divide the job through the specialisation among different groups. In this way, the task isexecuted by mutual understanding. All types of companies use departmentalisation structurebecause it is easy to carry out the activities and increase the accountability. Apple Company isusing functional departmentalisation they are grouping the individuals by their knowledge, skillsand abilities. In this way, they are emphasising more on the quality of products and flexibletowards the external changes.Corporate Culture and Performance of Organisation The corporate cultures are the adaptive values and beliefs of the organisation. Thecorporate culture is associated with the performance of the organisation. The negatives mean candirectly affect the organisational performance and destroy the image of the brand. The culture isthe internal variable of organisation which strengths the organisational financial performance.The successful organisations are made up of a strong culture with superior outcomes. Thecorporate culture of Apple Company is extremely strong and stylish. The friendly andcooperative relationship between managers and employees is making the company grow faster.They are innovating new products, which is making the lives of customers easier (Lee, 2004).
  7. 7. Influence of Leadership over Organisational Performance The elements of leadership playan important role in the internal culture of theorganisation. The behaviour of management with employees helps in the expansion of thecompany. The organisations appoint those managers who can motivate employees andunderstand their value. The management of Apple communicates with employees and motivatesthem at every step. The management emphasises more on the value of employees and theirsatisfaction (Leidner, 1993). The leadership training programs also offer to employees for theirbest performance and career development. The activities offered by organisations encourageemployees and make them feel privileged. The management of Apple Company maintains thesecure environment for employees and keep them updating about opportunities. Therefore, it isimperative that employees embrace those strategies and techniques, which will enhance theirworking abilities and performance.Conclusion From the overall essay, it is concluded that the organisational structure and culture playsa vital role in performance of the company. It will not only affect the internal environment of theorganisation, but also effects on the performance. The better adoption of organisational culturestrategies and structures may enhance the working ability of employees. This will also improvethe internal weakness of a company through which company can face all the challenges andchanges.Apple is the world largest innovative company. They are ruling the technological world byfollowing the better organisational structure and culture. The managers and employees are morefocus towards interacting with each other and sharing new innovative ideas. In this way, they areproducing different products rapidly. The practices done by them are their competitive advantagefor them because they are increasing their financial conditions day by day. The brand is almostrecognised in every part of the world.
  8. 8. References: AL-Alawi, A.I., AL-Marzooqi, Y.N and Mohammed, Y.F. (2007) Organizational Culture and Knowledge Sharing: critical success factors. Journal of Knowledge Management, 11(2),pp. 22-42. Daft, R.L. (2007) Organization Theory and Design.9thed. Cengage Learning. Eccles, R.G., Ioannou, I and Serafeim, G. (2011) The Impact of a Corporate Culture of Sustainability on Corporate Behaviour and Performance. Harvard Business School. Grady, J.D (2009) Apple Inc Corporations That Changed the World Series.ABC-CLIO. Griffin, R.W and Moorhead, G. (2011) Organizational Behavior: Managing People and Organizations. 10th ed. CengageLerning. O’Grady. J.D. (2009) Apple Inc Corporations that Changes the World Series. ABC- CLIO. Keyton, J. (2011) Communication and Organizational Culture: A key to Understand Work Experiences. 2nd ed. SAGE. Lee. S.K and YU, K. (2004) Corporate Culture and organizational performance.Journal of Managerial Psychology.19 (4), pp. 340 Nicotera, A.M., Clinkscales, M.J and Walker, F.R (2003) Understanding Organization through Culture and Structure: Relational and Other Lessons from the African American Organzation.Routledge. Swe, V. and Kleiner, H.B. (1998) Managing and Changing Mistrustful Cultures.Industrial and Training, 30(2), pp. 66-70.