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    Implications of organizational structure and culture

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    Details: Organizations have distinct structures and cultures that influence their direction and reactions to change. Your director is thinking about proposing a new process for sales that represents a fairly large shift in the way things are currently done. The director would like to meet with you to discuss any possible resistance to the change that may originate from your organization's culture and structure. Prepare a general discussion document you will use to inform your director of the types of resistance to change that can come from different structures and cultures. Select one type of resistance to change that can come from organizational structure or culture and offer some suggestions on how to decrease the resistance.

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    Organizational structure and change

    Organizational structure is the formal decision-making framework by which job tasks are divided, grouped, and coordinated. Organizational structure determines the role and responsibilities within the organization.

    Types of organization structure:
    Functional Structure
    The organization is structured according to functional areas like marketing, human resource, operations etc. This structure is best used when creating specific, uniform products. They are economically efficient, but lack accountability. Communication between functional areas can be difficult.

    Divisional Structure
    Divisional structure is formed by splitting the organization into a number of self-contained business units, each of which operates as a profit centre. This division can occour on the basis of product or market or a combination of the two with each unit tending to operate along functional or product lines, but with certain key function (e.g. finance, personnel, corporate planning) provided centrally, usually at company headquarters. For example, General Motors' divisions include Chevrolet, Oldsmobile, Pontiac, and Cadillac. A central headquarters, focusing or results, coordinates and controls the activities, and provides support services between divisions.
    Functional departments accomplish division goals. A weakness however, is the tendency to duplicate activities among divisions. Functional organizations are organized according to technological disciplines.
    Organizational structure depends on the product to be developed. Wheelwright and Clark define a continuum of organizational structures between two extremes, functional organizations and project organizations. (ollie.dcccd.edu/mgmt1374/book_contents/3organizing/org_process/org_process.htm)
    Products that need a high level of specialized knowledge require a functionally organized structure.

    Thus change is required when there is growth in the organization or change in the product of the organization or when ...

    Solution Summary

    This discusses the implications of organizational structure and culture on organization

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